Correlation Between Mid-cap Growth and Great West
Can any of the company-specific risk be diversified away by investing in both Mid-cap Growth 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 Mid-cap Growth and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth Profund and Great West Loomis Sayles, you can compare the effects of market volatilities on Mid-cap Growth 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 Mid-cap Growth with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Growth and Great West.
Diversification Opportunities for Mid-cap Growth and Great West
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid-cap and Great is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund and Great West Loomis Sayles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Loomis and Mid-cap Growth 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 Mid Cap Growth Profund 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 Loomis has no effect on the direction of Mid-cap Growth i.e., Mid-cap Growth and Great West go up and down completely randomly.
Pair Corralation between Mid-cap Growth and Great West
Assuming the 90 days horizon Mid-cap Growth is expected to generate 1.25 times less return on investment than Great West. But when comparing it to its historical volatility, Mid Cap Growth Profund is 1.03 times less risky than Great West. It trades about 0.02 of its potential returns per unit of risk. Great West Loomis Sayles is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,601 in Great West Loomis Sayles on April 21, 2025 and sell it today you would earn a total of 215.00 from holding Great West Loomis Sayles or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth Profund vs. Great West Loomis Sayles
Performance |
| Timeline |
| Mid Cap Growth |
| Great West Loomis |
Mid-cap Growth and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Growth and Great West
The main advantage of trading using opposite Mid-cap Growth and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Growth 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.| Mid-cap Growth vs. Small Cap Growth Profund | Mid-cap Growth vs. Mid Cap Value Profund | Mid-cap Growth vs. Small Cap Value Profund | Mid-cap Growth vs. Mid Cap Profund Mid Cap |
| Great West vs. American Century Etf | Great West vs. Valic Company I | Great West vs. Northern Small Cap | Great West vs. Ultrasmall Cap Profund Ultrasmall Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |