Correlation Between Aew Real and Great West
Can any of the company-specific risk be diversified away by investing in both Aew Real and Great West 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 Aew Real and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aew Real Estate and Great West Real Estate, you can compare the effects of market volatilities on Aew Real and Great West 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 Aew Real with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aew Real and Great West.
Diversification Opportunities for Aew Real and Great West
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aew and Great is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aew Real Estate and Great West Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Real and Aew Real 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 Aew Real Estate are associated (or correlated) with Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Real has no effect on the direction of Aew Real i.e., Aew Real and Great West go up and down completely randomly.
Pair Corralation between Aew Real and Great West
Assuming the 90 days horizon Aew Real is expected to generate 4.24 times less return on investment than Great West. But when comparing it to its historical volatility, Aew Real Estate is 1.19 times less risky than Great West. It trades about 0.01 of its potential returns per unit of risk. Great West Real Estate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Great West Real Estate on September 5, 2025 and sell it today you would earn a total of 13.00 from holding Great West Real Estate or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aew Real Estate vs. Great West Real Estate
Performance |
| Timeline |
| Aew Real Estate |
| Great West Real |
Aew Real and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aew Real and Great West
The main advantage of trading using opposite Aew Real and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aew Real position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Aew Real vs. Profunds Large Cap Growth | Aew Real vs. Transamerica Large Cap | Aew Real vs. Large Cap International | Aew Real vs. Sterling Capital Behavioral |
| Great West vs. Fidelity Managed Retirement | Great West vs. Franklin Lifesmart 2060 | Great West vs. Transamerica Asset Allocation | Great West vs. Nationwide Investor Destinations |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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