Correlation Between Great-west Real and Pender Real
Can any of the company-specific risk be diversified away by investing in both Great-west Real and Pender Real 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 Pender Real 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 Pender Real Estate, you can compare the effects of market volatilities on Great-west Real and Pender Real 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 Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Real and Pender Real.
Diversification Opportunities for Great-west Real and Pender Real
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Great-west and Pender is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate 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 Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Great-west Real i.e., Great-west Real and Pender Real go up and down completely randomly.
Pair Corralation between Great-west Real and Pender Real
Assuming the 90 days horizon Great West Real Estate is expected to under-perform the Pender Real. In addition to that, Great-west Real is 20.0 times more volatile than Pender Real Estate. It trades about -0.04 of its total potential returns per unit of risk. Pender Real Estate is currently generating about 0.6 per unit of volatility. If you would invest 1,002 in Pender Real Estate on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Pender Real Estate or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Real Estate vs. Pender Real Estate
Performance |
| Timeline |
| Great West Real |
| Pender Real Estate |
Great-west Real and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Real and Pender Real
The main advantage of trading using opposite Great-west Real and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Real position performs unexpectedly, Pender Real 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 Pender Real will offset losses from the drop in Pender Real's long position.| Great-west Real vs. Siit Large Cap | Great-west Real vs. Qs Large Cap | Great-west Real vs. Aqr Large Cap | Great-west Real vs. Nuveen Winslow Large Cap |
| Pender Real vs. Vanguard Financials Index | Pender Real vs. Prudential Jennison Financial | Pender Real vs. Goldman Sachs Financial | Pender Real vs. Icon Financial Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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