Correlation Between Growth Fund and Elfun Trusts
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Elfun Trusts 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 Growth Fund and Elfun Trusts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Elfun Trusts Elfun, you can compare the effects of market volatilities on Growth Fund and Elfun Trusts 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 Growth Fund with a short position of Elfun Trusts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Elfun Trusts.
Diversification Opportunities for Growth Fund and Elfun Trusts
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Growth and Elfun is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Elfun Trusts Elfun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Trusts Elfun and Growth Fund 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 Growth Fund Of are associated (or correlated) with Elfun Trusts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Trusts Elfun has no effect on the direction of Growth Fund i.e., Growth Fund and Elfun Trusts go up and down completely randomly.
Pair Corralation between Growth Fund and Elfun Trusts
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.08 times more return on investment than Elfun Trusts. However, Growth Fund is 1.08 times more volatile than Elfun Trusts Elfun. It trades about 0.16 of its potential returns per unit of risk. Elfun Trusts Elfun is currently generating about 0.15 per unit of risk. If you would invest 5,639 in Growth Fund Of on September 1, 2024 and sell it today you would earn a total of 2,611 from holding Growth Fund Of or generate 46.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Growth Fund Of vs. Elfun Trusts Elfun
Performance |
| Timeline |
| Growth Fund |
| Elfun Trusts Elfun |
Growth Fund and Elfun Trusts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Elfun Trusts
The main advantage of trading using opposite Growth Fund and Elfun Trusts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Elfun Trusts 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 Trusts will offset losses from the drop in Elfun Trusts' long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| Elfun Trusts vs. State Street Target | Elfun Trusts vs. State Street Target | Elfun Trusts vs. Ssga International Stock | Elfun Trusts vs. State Street Target |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |