Correlation Between Managed Account and Great West
Can any of the company-specific risk be diversified away by investing in both Managed Account and Great West at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Managed Account and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Managed Account Series and Great West Lifeco, you can compare the effects of market volatilities on Managed Account and Great West and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Managed Account with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Managed Account and Great West.
Diversification Opportunities for Managed Account and Great West
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Managed and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Managed Account Series and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco and Managed Account is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Managed Account Series are associated (or correlated) with Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifeco has no effect on the direction of Managed Account i.e., Managed Account and Great West go up and down completely randomly.
Pair Corralation between Managed Account and Great West
If you would invest 884.00 in Managed Account Series on November 18, 2024 and sell it today you would earn a total of 8.00 from holding Managed Account Series or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Managed Account Series vs. Great West Lifeco
Performance |
| Timeline |
| Managed Account Series |
| Great West Lifeco |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Managed Account and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Managed Account and Great West
The main advantage of trading using opposite Managed Account and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Managed Account position performs unexpectedly, Great West can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Great West will offset losses from the drop in Great West's long position.| Managed Account vs. Jhancock Diversified Macro | Managed Account vs. American Century Diversified | Managed Account vs. Mfs Diversified Income | Managed Account vs. Stone Ridge Diversified |
| Great West vs. Manulife Financial | Great West vs. Manulife Financial | Great West vs. Prudential PLC ADR | Great West vs. Manulife Financial Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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