Correlation Between Great-west Inflation-protec and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Great-west Inflation-protec and Fidelity Salem 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 Inflation-protec and Fidelity Salem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Inflation Protected Securities and Fidelity Salem Street, you can compare the effects of market volatilities on Great-west Inflation-protec and Fidelity Salem 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 Inflation-protec with a short position of Fidelity Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Inflation-protec and Fidelity Salem.
Diversification Opportunities for Great-west Inflation-protec and Fidelity Salem
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great-west and Fidelity is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Great West Inflation Protected and Fidelity Salem Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Salem Street and Great-west Inflation-protec 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 Inflation Protected Securities are associated (or correlated) with Fidelity Salem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Salem Street has no effect on the direction of Great-west Inflation-protec i.e., Great-west Inflation-protec and Fidelity Salem go up and down completely randomly.
Pair Corralation between Great-west Inflation-protec and Fidelity Salem
Assuming the 90 days horizon Great West Inflation Protected Securities is expected to generate 0.59 times more return on investment than Fidelity Salem. However, Great West Inflation Protected Securities is 1.7 times less risky than Fidelity Salem. It trades about 0.01 of its potential returns per unit of risk. Fidelity Salem Street is currently generating about -0.02 per unit of risk. If you would invest 896.00 in Great West Inflation Protected Securities on November 2, 2024 and sell it today you would earn a total of 4.00 from holding Great West Inflation Protected Securities or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Inflation Protected vs. Fidelity Salem Street
Performance |
| Timeline |
| Great-west Inflation-protec |
| Fidelity Salem Street |
Great-west Inflation-protec and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Inflation-protec and Fidelity Salem
The main advantage of trading using opposite Great-west Inflation-protec and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Inflation-protec position performs unexpectedly, Fidelity Salem 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 Fidelity Salem will offset losses from the drop in Fidelity Salem's long position.| Great-west Inflation-protec vs. Glg Intl Small | Great-west Inflation-protec vs. Touchstone Small Cap | Great-west Inflation-protec vs. Praxis Small Cap | Great-west Inflation-protec vs. Smallcap Fund Fka |
| Fidelity Salem vs. Rbc Ultra Short Fixed | Fidelity Salem vs. Multisector Bond Sma | Fidelity Salem vs. Blrc Sgy Mnp | Fidelity Salem vs. Dreyfusstandish Global Fixed |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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