Correlation Between Great West and Ab Small
Can any of the company-specific risk be diversified away by investing in both Great West and Ab Small 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 Ab Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Goldman Sachs and Ab Small Cap, you can compare the effects of market volatilities on Great West and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Ab Small.
Diversification Opportunities for Great West and Ab Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and SCAVX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Great West Goldman Sachs and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Goldman Sachs are associated (or correlated) with Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Great West i.e., Great West and Ab Small go up and down completely randomly.
Pair Corralation between Great West and Ab Small
Assuming the 90 days horizon Great West is expected to generate 1.41 times less return on investment than Ab Small. But when comparing it to its historical volatility, Great West Goldman Sachs is 1.23 times less risky than Ab Small. It trades about 0.22 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Ab Small Cap on April 14, 2025 and sell it today you would earn a total of 243.00 from holding Ab Small Cap or generate 20.03% 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 Goldman Sachs vs. Ab Small Cap
Performance |
| Timeline |
| Great West Goldman |
| Ab Small Cap |
Great West and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Ab Small
The main advantage of trading using opposite Great West and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small's long position.| Great West vs. Ivy Energy Fund | Great West vs. Calvert Global Energy | Great West vs. Jennison Natural Resources | Great West vs. Energy Basic Materials |
| Ab Small vs. Precious Metals And | Ab Small vs. Gabelli Gold Fund | Ab Small vs. James Balanced Golden | Ab Small vs. Oppenheimer Gold Special |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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