Correlation Between American Funds and Elfun Government
Can any of the company-specific risk be diversified away by investing in both American Funds and Elfun Government 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 American Funds and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds 2035 and Elfun Government Money, you can compare the effects of market volatilities on American Funds and Elfun Government 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 American Funds with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Elfun Government.
Diversification Opportunities for American Funds and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMERICAN and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2035 and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and American Funds 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 American Funds 2035 are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of American Funds i.e., American Funds and Elfun Government go up and down completely randomly.
Pair Corralation between American Funds and Elfun Government
If you would invest 1,938 in American Funds 2035 on September 3, 2024 and sell it today you would earn a total of 78.00 from holding American Funds 2035 or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
American Funds 2035 vs. Elfun Government Money
Performance |
| Timeline |
| American Funds 2035 |
| Elfun Government Money |
American Funds and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Elfun Government
The main advantage of trading using opposite American Funds and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| American Funds vs. Elfun Government Money | American Funds vs. Hsbc Treasury Money | American Funds vs. Ashmore Emerging Markets | American Funds vs. Wells Fargo Funds |
| Elfun Government vs. Touchstone Premium Yield | Elfun Government vs. Limited Term Tax | Elfun Government vs. Bbh Intermediate Municipal | Elfun Government vs. Versatile Bond Portfolio |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |