Correlation Between George Weston and Great West
Can any of the company-specific risk be diversified away by investing in both George Weston 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 George Weston and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Weston Limited and Great West Lifeco, you can compare the effects of market volatilities on George Weston 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 George Weston with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Weston and Great West.
Diversification Opportunities for George Weston and Great West
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between George and Great is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding George Weston Limited 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 George Weston 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 George Weston Limited 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 George Weston i.e., George Weston and Great West go up and down completely randomly.
Pair Corralation between George Weston and Great West
If you would invest 11,802 in George Weston Limited on September 3, 2024 and sell it today you would earn a total of 3,981 from holding George Weston Limited or generate 33.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
George Weston Limited vs. Great West Lifeco
Performance |
| Timeline |
| George Weston Limited |
| Great West Lifeco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
George Weston and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with George Weston and Great West
The main advantage of trading using opposite George Weston and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Weston 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.| George Weston vs. Village Super Market | George Weston vs. Ingles Markets Incorporated | George Weston vs. Natural Grocers by | George Weston vs. Grocery Outlet Holding |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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