Correlation Between Great West and International Fund
Can any of the company-specific risk be diversified away by investing in both Great West and International Fund 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 International Fund 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 International Fund International, you can compare the effects of market volatilities on Great West and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and International Fund.
Diversification Opportunities for Great West and International Fund
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great and International is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 Loomis Sayles are associated (or correlated) with International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Great West i.e., Great West and International Fund go up and down completely randomly.
Pair Corralation between Great West and International Fund
Assuming the 90 days horizon Great West Loomis Sayles is expected to under-perform the International Fund. In addition to that, Great West is 1.46 times more volatile than International Fund International. It trades about -0.04 of its total potential returns per unit of risk. International Fund International is currently generating about 0.03 per unit of volatility. If you would invest 2,826 in International Fund International on September 12, 2024 and sell it today you would earn a total of 12.00 from holding International Fund International or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. International Fund Internation
Performance |
| Timeline |
| Great West Loomis |
| International Fund |
Great West and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and International Fund
The main advantage of trading using opposite Great West and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund's long position.| Great West vs. Vanguard Small Cap Value | Great West vs. Vanguard Small Cap Value | Great West vs. Us Small Cap | Great West vs. Us Targeted Value |
| International Fund vs. Amg River Road | International Fund vs. Palm Valley Capital | International Fund vs. Great West Loomis Sayles | International Fund vs. Heartland Value Plus |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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