Correlation Between Great-west Real and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Great-west Real and Ladenburg Growth 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 Real and Ladenburg Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Real Estate and Ladenburg Growth, you can compare the effects of market volatilities on Great-west Real and Ladenburg Growth 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 Real with a short position of Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Real and Ladenburg Growth.
Diversification Opportunities for Great-west Real and Ladenburg Growth
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Great-west and Ladenburg is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth and Great-west Real 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 Real Estate are associated (or correlated) with Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Great-west Real i.e., Great-west Real and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Great-west Real and Ladenburg Growth
Assuming the 90 days horizon Great West Real Estate is expected to generate 1.27 times more return on investment than Ladenburg Growth. However, Great-west Real is 1.27 times more volatile than Ladenburg Growth. It trades about 0.17 of its potential returns per unit of risk. Ladenburg Growth is currently generating about 0.15 per unit of risk. If you would invest 1,160 in Great West Real Estate on September 2, 2024 and sell it today you would earn a total of 228.00 from holding Great West Real Estate or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Real Estate vs. Ladenburg Growth
Performance |
| Timeline |
| Great West Real |
| Ladenburg Growth |
Great-west Real and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Real and Ladenburg Growth
The main advantage of trading using opposite Great-west Real and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Real position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| Great-west Real vs. Realty Income | Great-west Real vs. Dynex Capital | Great-west Real vs. First Industrial Realty | Great-west Real vs. Healthcare Realty Trust |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |