Correlation Between Ab Global and Elfun Trusts
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Elfun Trusts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Elfun Trusts Elfun, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Elfun Trusts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Elfun Trusts.
Diversification Opportunities for Ab Global and Elfun Trusts
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBSYX and Elfun is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk 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 Ab Global 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 Ab Global Risk 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 Ab Global i.e., Ab Global and Elfun Trusts go up and down completely randomly.
Pair Corralation between Ab Global and Elfun Trusts
Assuming the 90 days horizon Ab Global Risk is expected to under-perform the Elfun Trusts. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Global Risk is 1.07 times less risky than Elfun Trusts. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Elfun Trusts Elfun is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,692 in Elfun Trusts Elfun on September 20, 2024 and sell it today you would earn a total of 4,012 from holding Elfun Trusts Elfun or generate 70.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Elfun Trusts Elfun
Performance |
| Timeline |
| Ab Global Risk |
| Elfun Trusts Elfun |
Ab Global and Elfun Trusts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Elfun Trusts
The main advantage of trading using opposite Ab Global and Elfun Trusts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Minnesota Portfolio |
| Elfun Trusts vs. Ab Global Bond | Elfun Trusts vs. Barings Global Floating | Elfun Trusts vs. Ab Global Risk | Elfun Trusts vs. Investec Global Franchise |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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