Correlation Between Great West and Wasatch Micro
Can any of the company-specific risk be diversified away by investing in both Great West and Wasatch Micro 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 Wasatch Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Real Estate and Wasatch Micro Cap, you can compare the effects of market volatilities on Great West and Wasatch Micro 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 Wasatch Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Wasatch Micro.
Diversification Opportunities for Great West and Wasatch Micro
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Great and Wasatch is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate and Wasatch Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Micro 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 Real Estate are associated (or correlated) with Wasatch Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Micro Cap has no effect on the direction of Great West i.e., Great West and Wasatch Micro go up and down completely randomly.
Pair Corralation between Great West and Wasatch Micro
Assuming the 90 days horizon Great West Real Estate is expected to generate 0.66 times more return on investment than Wasatch Micro. However, Great West Real Estate is 1.51 times less risky than Wasatch Micro. It trades about 0.04 of its potential returns per unit of risk. Wasatch Micro Cap is currently generating about 0.01 per unit of risk. If you would invest 1,236 in Great West Real Estate on September 4, 2025 and sell it today you would earn a total of 21.00 from holding Great West Real Estate or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Great West Real Estate vs. Wasatch Micro Cap
Performance |
| Timeline |
| Great West Real |
| Wasatch Micro Cap |
Great West and Wasatch Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Wasatch Micro
The main advantage of trading using opposite Great West and Wasatch Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Wasatch Micro 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 Wasatch Micro will offset losses from the drop in Wasatch Micro's long position.| Great West vs. Fidelity Managed Retirement | Great West vs. Franklin Lifesmart 2060 | Great West vs. Transamerica Asset Allocation | Great West vs. Nationwide Investor Destinations |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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