Correlation Between Great West and Cref Inflation-linked
Can any of the company-specific risk be diversified away by investing in both Great West and Cref Inflation-linked 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 Cref Inflation-linked 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 Cref Inflation Linked Bond, you can compare the effects of market volatilities on Great West and Cref Inflation-linked 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 Cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Cref Inflation-linked.
Diversification Opportunities for Great West and Cref Inflation-linked
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Great and Cref is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Great West Inflation Protected and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked 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 Cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of Great West i.e., Great West and Cref Inflation-linked go up and down completely randomly.
Pair Corralation between Great West and Cref Inflation-linked
Assuming the 90 days horizon Great West is expected to generate 1.0 times less return on investment than Cref Inflation-linked. In addition to that, Great West is 1.06 times more volatile than Cref Inflation Linked Bond. It trades about 0.32 of its total potential returns per unit of risk. Cref Inflation Linked Bond is currently generating about 0.34 per unit of volatility. If you would invest 8,773 in Cref Inflation Linked Bond on June 9, 2025 and sell it today you would earn a total of 316.00 from holding Cref Inflation Linked Bond or generate 3.6% 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 Inflation Protected vs. Cref Inflation Linked Bond
Performance |
| Timeline |
| Great West Inflation |
| Cref Inflation Linked |
Great West and Cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Cref Inflation-linked
The main advantage of trading using opposite Great West and Cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Cref Inflation-linked 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 Cref Inflation-linked will offset losses from the drop in Cref Inflation-linked'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 |
| Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard 500 Index | Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard Total Stock |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |