Correlation Between Ocumetics Technology and Great West
Can any of the company-specific risk be diversified away by investing in both Ocumetics Technology and Great West 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 Ocumetics Technology and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocumetics Technology Corp and Great West Lifeco, you can compare the effects of market volatilities on Ocumetics Technology and Great West 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 Ocumetics Technology with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Great West.
Diversification Opportunities for Ocumetics Technology and Great West
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ocumetics and Great is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Great West. 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 Lifeco has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Great West go up and down completely randomly.
Pair Corralation between Ocumetics Technology and Great West
Assuming the 90 days horizon Ocumetics Technology is expected to generate 1.94 times less return on investment than Great West. In addition to that, Ocumetics Technology is 5.88 times more volatile than Great West Lifeco. It trades about 0.01 of its total potential returns per unit of risk. Great West Lifeco is currently generating about 0.06 per unit of volatility. If you would invest 1,759 in Great West Lifeco on September 14, 2024 and sell it today you would earn a total of 406.00 from holding Great West Lifeco or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocumetics Technology Corp vs. Great West Lifeco
Performance |
| Timeline |
| Ocumetics Technology Corp |
| Great West Lifeco |
Ocumetics Technology and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocumetics Technology and Great West
The main advantage of trading using opposite Ocumetics Technology and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocumetics Technology position performs unexpectedly, Great West 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 will offset losses from the drop in Great West's long position.| Ocumetics Technology vs. JPMorgan Chase Co | Ocumetics Technology vs. Bank of America | Ocumetics Technology vs. Toronto Dominion Bank | Ocumetics Technology vs. Royal Bank of |
| Great West vs. Quisitive Technology Solutions | Great West vs. Ocumetics Technology Corp | Great West vs. Quipt Home Medical | Great West vs. Exco Technologies Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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