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
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aew and Great is 0.87. 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 Estate is expected to under-perform the Great West. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aew Real Estate is 1.17 times less risky than Great West. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Great West Real Estate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Great West Real Estate on May 2, 2025 and sell it today you would earn a total of 5.00 from holding Great West Real Estate or generate 0.61% 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. Alphacentric Lifesci Healthcare | Aew Real vs. Invesco Global Health | Aew Real vs. Tekla Healthcare Investors | Aew Real vs. Prudential Health Sciences |
| Great West vs. Gmo Emerging Markets | Great West vs. Seafarer Overseas Growth | Great West vs. Sa Emerging Markets | Great West vs. Alphacentric Hedged Market |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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