Correlation Between Gold Terra and Great West
Can any of the company-specific risk be diversified away by investing in both Gold Terra 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 Gold Terra and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Terra Resource and Great West Lifeco, you can compare the effects of market volatilities on Gold Terra 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 Gold Terra with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Terra and Great West.
Diversification Opportunities for Gold Terra and Great West
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and Great is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gold Terra Resource 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 Gold Terra 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 Gold Terra Resource 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 Gold Terra i.e., Gold Terra and Great West go up and down completely randomly.
Pair Corralation between Gold Terra and Great West
Assuming the 90 days horizon Gold Terra is expected to generate 1.14 times less return on investment than Great West. In addition to that, Gold Terra is 7.54 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 0.09 per unit of volatility. If you would invest 3,244 in Great West Lifeco on November 2, 2024 and sell it today you would earn a total of 1,414 from holding Great West Lifeco or generate 43.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Terra Resource vs. Great West Lifeco
Performance |
| Timeline |
| Gold Terra Resource |
| Great West Lifeco |
Gold Terra and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Terra and Great West
The main advantage of trading using opposite Gold Terra and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Terra 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.| Gold Terra vs. GR Silver Mining | Gold Terra vs. Maple Gold Mines | Gold Terra vs. Revival Gold | Gold Terra vs. White Gold Corp |
| Great West vs. Sun Life Financial | Great West vs. Power | Great West vs. Manulife Financial Corp | Great West vs. National Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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