Correlation Between PICC Property and Great West
Can any of the company-specific risk be diversified away by investing in both PICC Property 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 PICC Property and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and Great West Lifeco, you can compare the effects of market volatilities on PICC Property 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 PICC Property with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and Great West.
Diversification Opportunities for PICC Property and Great West
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PICC and Great is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and 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 PICC Property 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 PICC Property and 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 PICC Property i.e., PICC Property and Great West go up and down completely randomly.
Pair Corralation between PICC Property and Great West
If you would invest 3,852 in PICC Property and on September 2, 2024 and sell it today you would earn a total of 10.00 from holding PICC Property and or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
PICC Property and vs. Great West Lifeco
Performance |
| Timeline |
| PICC Property |
| Great West Lifeco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PICC Property and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and Great West
The main advantage of trading using opposite PICC Property and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property 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.The idea behind PICC Property and and Great West Lifeco pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Great West vs. Manulife Financial | Great West vs. Manulife Financial | Great West vs. Prudential Public Limited | Great West vs. Manulife Financial Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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