Correlation Between Great-west and Sit Us
Can any of the company-specific risk be diversified away by investing in both Great-west and Sit Us 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 Great-west and Sit Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Government Mortgage and Sit Government Securities, you can compare the effects of market volatilities on Great-west and Sit Us 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 Great-west with a short position of Sit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west and Sit Us.
Diversification Opportunities for Great-west and Sit Us
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great-west and Sit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Great West Government Mortgage and Sit Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Government Securities and Great-west 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 Great West Government Mortgage are associated (or correlated) with Sit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Government Securities has no effect on the direction of Great-west i.e., Great-west and Sit Us go up and down completely randomly.
Pair Corralation between Great-west and Sit Us
Assuming the 90 days horizon Great West Government Mortgage is expected to generate 1.1 times more return on investment than Sit Us. However, Great-west is 1.1 times more volatile than Sit Government Securities. It trades about 0.14 of its potential returns per unit of risk. Sit Government Securities is currently generating about 0.09 per unit of risk. If you would invest 837.00 in Great West Government Mortgage on September 4, 2025 and sell it today you would earn a total of 14.00 from holding Great West Government Mortgage or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Government Mortgage vs. Sit Government Securities
Performance |
| Timeline |
| Great West Government |
| Sit Government Securities |
Great-west and Sit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west and Sit Us
The main advantage of trading using opposite Great-west and Sit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west position performs unexpectedly, Sit Us 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 Sit Us will offset losses from the drop in Sit Us' long position.| Great-west vs. Rbb Fund | Great-west vs. Siit Emerging Markets | Great-west vs. Gmo Quality Fund | Great-west vs. Doubleline Emerging Markets |
| Sit Us vs. Ultrasmall Cap Profund Ultrasmall Cap | Sit Us vs. Small Cap Growth Profund | Sit Us vs. Mid Cap Value Profund |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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