Correlation Between WildBrain and Great West
Can any of the company-specific risk be diversified away by investing in both WildBrain 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 WildBrain and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WildBrain and Great West Lifeco, you can compare the effects of market volatilities on WildBrain 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 WildBrain with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of WildBrain and Great West.
Diversification Opportunities for WildBrain and Great West
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WildBrain and Great is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding WildBrain and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco and WildBrain 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 WildBrain 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 Lifeco has no effect on the direction of WildBrain i.e., WildBrain and Great West go up and down completely randomly.
Pair Corralation between WildBrain and Great West
Assuming the 90 days trading horizon WildBrain is expected to under-perform the Great West. In addition to that, WildBrain is 2.99 times more volatile than Great West Lifeco. It trades about -0.09 of its total potential returns per unit of risk. Great West Lifeco is currently generating about 0.22 per unit of volatility. If you would invest 5,143 in Great West Lifeco on July 18, 2025 and sell it today you would earn a total of 677.00 from holding Great West Lifeco or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WildBrain vs. Great West Lifeco
Performance |
| Timeline |
| WildBrain |
| Great West Lifeco |
WildBrain and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WildBrain and Great West
The main advantage of trading using opposite WildBrain and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WildBrain 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.| WildBrain vs. Aris Mining | WildBrain vs. Monument Mining Limited | WildBrain vs. Calian Technologies | WildBrain vs. Perseus Mining |
| Great West vs. Sun Life Financial | Great West vs. Power | Great West vs. Manulife Financial Corp | Great West vs. National Bank of |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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