Correlation Between Great West and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Great West and Kopernik Global 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 and Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Goldman Sachs and Kopernik Global All Cap, you can compare the effects of market volatilities on Great West and Kopernik Global 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 with a short position of Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Kopernik Global.
Diversification Opportunities for Great West and Kopernik Global
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Kopernik is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Great West Goldman Sachs and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All and Great West 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 Goldman Sachs are associated (or correlated) with Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Great West i.e., Great West and Kopernik Global go up and down completely randomly.
Pair Corralation between Great West and Kopernik Global
Assuming the 90 days horizon Great West Goldman Sachs is expected to generate 1.11 times more return on investment than Kopernik Global. However, Great West is 1.11 times more volatile than Kopernik Global All Cap. It trades about 0.1 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.02 per unit of risk. If you would invest 823.00 in Great West Goldman Sachs on September 14, 2024 and sell it today you would earn a total of 180.00 from holding Great West Goldman Sachs or generate 21.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Goldman Sachs vs. Kopernik Global All Cap
Performance |
| Timeline |
| Great West Goldman |
| Kopernik Global All |
Great West and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Kopernik Global
The main advantage of trading using opposite Great West and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Great West vs. Dana Large Cap | Great West vs. Large Cap Growth Profund | Great West vs. Lord Abbett Affiliated | Great West vs. Pace Large Value |
| Kopernik Global vs. Kopernik Global All Cap | Kopernik Global vs. Kopernik International Fund | Kopernik Global vs. Kopernik International | Kopernik Global vs. Vanguard High Yield Corporate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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