Correlation Between Great-west Lifetime and Great-west Core
Can any of the company-specific risk be diversified away by investing in both Great-west Lifetime and Great-west Core 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 Great-west Lifetime and Great-west Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Lifetime 2020 and Great West E Bond, you can compare the effects of market volatilities on Great-west Lifetime and Great-west Core 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 Great-west Lifetime with a short position of Great-west Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Lifetime and Great-west Core.
Diversification Opportunities for Great-west Lifetime and Great-west Core
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Great-west and Great-west is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Great West Lifetime 2020 and Great West E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great-west Core and Great-west Lifetime 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 Great West Lifetime 2020 are associated (or correlated) with Great-west Core. 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 Core has no effect on the direction of Great-west Lifetime i.e., Great-west Lifetime and Great-west Core go up and down completely randomly.
Pair Corralation between Great-west Lifetime and Great-west Core
Assuming the 90 days horizon Great West Lifetime 2020 is expected to generate 1.02 times more return on investment than Great-west Core. However, Great-west Lifetime is 1.02 times more volatile than Great West E Bond. It trades about 0.06 of its potential returns per unit of risk. Great West E Bond is currently generating about 0.03 per unit of risk. If you would invest 962.00 in Great West Lifetime 2020 on September 3, 2024 and sell it today you would earn a total of 126.00 from holding Great West Lifetime 2020 or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Lifetime 2020 vs. Great West E Bond
Performance |
| Timeline |
| Great West Lifetime |
| Great-west Core |
Great-west Lifetime and Great-west Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Lifetime and Great-west Core
The main advantage of trading using opposite Great-west Lifetime and Great-west Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Lifetime position performs unexpectedly, Great-west Core 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 Core will offset losses from the drop in Great-west Core's long position.| Great-west Lifetime vs. John Hancock Funds | Great-west Lifetime vs. Transamerica Asset Allocation | Great-west Lifetime vs. T Rowe Price | Great-west Lifetime vs. Jp Morgan Smartretirement |
| Great-west Core vs. Mondrian Emerging Markets | Great-west Core vs. Jpmorgan Emerging Markets | Great-west Core vs. Kinetics Market Opportunities | Great-west Core vs. Shelton Emerging Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |