Correlation Between Great West and Axs Thomson
Can any of the company-specific risk be diversified away by investing in both Great West and Axs Thomson 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 Axs Thomson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Inflation Protected Securities and Axs Thomson Reuters, you can compare the effects of market volatilities on Great West and Axs Thomson 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 Axs Thomson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Axs Thomson.
Diversification Opportunities for Great West and Axs Thomson
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Axs is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Great West Inflation Protected and Axs Thomson Reuters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axs Thomson Reuters 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 Inflation Protected Securities are associated (or correlated) with Axs Thomson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axs Thomson Reuters has no effect on the direction of Great West i.e., Great West and Axs Thomson go up and down completely randomly.
Pair Corralation between Great West and Axs Thomson
Assuming the 90 days horizon Great West is expected to generate 1.19 times less return on investment than Axs Thomson. But when comparing it to its historical volatility, Great West Inflation Protected Securities is 7.63 times less risky than Axs Thomson. It trades about 0.32 of its potential returns per unit of risk. Axs Thomson Reuters is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,861 in Axs Thomson Reuters on June 8, 2025 and sell it today you would earn a total of 107.00 from holding Axs Thomson Reuters or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Inflation Protected vs. Axs Thomson Reuters
Performance |
| Timeline |
| Great West Inflation |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Axs Thomson Reuters |
Great West and Axs Thomson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Axs Thomson
The main advantage of trading using opposite Great West and Axs Thomson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Axs Thomson 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 Axs Thomson will offset losses from the drop in Axs Thomson's long position.| Great West vs. Ishares Municipal Bond | Great West vs. Lord Abbett Intermediate | Great West vs. Intermediate Term Tax Free Bond | Great West vs. Ab Municipal Bond |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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