Correlation Between Great-west Loomis and Access Capital
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis and Access Capital 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 Loomis and Access Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Access Capital Munity, you can compare the effects of market volatilities on Great-west Loomis and Access Capital 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 Loomis with a short position of Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Access Capital.
Diversification Opportunities for Great-west Loomis and Access Capital
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great-west and Access is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Great-west Loomis 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 Loomis Sayles are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Access Capital go up and down completely randomly.
Pair Corralation between Great-west Loomis and Access Capital
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 3.69 times more return on investment than Access Capital. However, Great-west Loomis is 3.69 times more volatile than Access Capital Munity. It trades about 0.08 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.08 per unit of risk. If you would invest 3,724 in Great West Loomis Sayles on September 1, 2024 and sell it today you would earn a total of 454.00 from holding Great West Loomis Sayles or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Access Capital Munity
Performance |
| Timeline |
| Great West Loomis |
| Access Capital Munity |
Great-west Loomis and Access Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Access Capital
The main advantage of trading using opposite Great-west Loomis and Access Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis position performs unexpectedly, Access Capital 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 Access Capital will offset losses from the drop in Access Capital's long position.| Great-west Loomis vs. Gabelli Gold Fund | Great-west Loomis vs. Global Gold Fund | Great-west Loomis vs. Invesco Gold Special | Great-west Loomis vs. International Investors Gold |
| Access Capital vs. Harbor Vertible Securities | Access Capital vs. Lord Abbett Convertible | Access Capital vs. Virtus Convertible | Access Capital vs. Rationalpier 88 Convertible |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |