Correlation Between NYSE Composite and Great-west Mfs
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Great-west Mfs 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 NYSE Composite and Great-west Mfs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Great West Mfs International, you can compare the effects of market volatilities on NYSE Composite and Great-west Mfs 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 NYSE Composite with a short position of Great-west Mfs. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Great-west Mfs.
Diversification Opportunities for NYSE Composite and Great-west Mfs
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Great-west is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Great West Mfs International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Mfs and NYSE Composite 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 NYSE Composite are associated (or correlated) with Great-west Mfs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Mfs has no effect on the direction of NYSE Composite i.e., NYSE Composite and Great-west Mfs go up and down completely randomly.
Pair Corralation between NYSE Composite and Great-west Mfs
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.92 times more return on investment than Great-west Mfs. However, NYSE Composite is 1.09 times less risky than Great-west Mfs. It trades about 0.08 of its potential returns per unit of risk. Great West Mfs International is currently generating about 0.05 per unit of risk. If you would invest 1,556,254 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 470,950 from holding NYSE Composite or generate 30.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Great West Mfs International
Performance |
| Timeline |
NYSE Composite and Great-west Mfs Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Great West Mfs International
Pair trading matchups for Great-west Mfs
Pair Trading with NYSE Composite and Great-west Mfs
The main advantage of trading using opposite NYSE Composite and Great-west Mfs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Great-west Mfs 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 Great-west Mfs will offset losses from the drop in Great-west Mfs' long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Great-west Mfs vs. Goldman Sachs Short | Great-west Mfs vs. Locorr Longshort Modities | Great-west Mfs vs. Calvert Short Duration | Great-west Mfs vs. Astor Longshort 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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