Correlation Between Doubleline Emerging and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Doubleline Emerging and Elfun Diversified 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 Doubleline Emerging and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Emerging Markets and Elfun Diversified Fund, you can compare the effects of market volatilities on Doubleline Emerging and Elfun Diversified 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 Doubleline Emerging with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Elfun Diversified.
Diversification Opportunities for Doubleline Emerging and Elfun Diversified
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Doubleline and Elfun is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Emerging Markets and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Doubleline Emerging 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 Doubleline Emerging Markets are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Doubleline Emerging i.e., Doubleline Emerging and Elfun Diversified go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Elfun Diversified
Assuming the 90 days horizon Doubleline Emerging Markets is expected to under-perform the Elfun Diversified. In addition to that, Doubleline Emerging is 1.18 times more volatile than Elfun Diversified Fund. It trades about -0.08 of its total potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.3 per unit of volatility. If you would invest 2,138 in Elfun Diversified Fund on September 1, 2024 and sell it today you would earn a total of 57.00 from holding Elfun Diversified Fund or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Elfun Diversified Fund
Performance |
| Timeline |
| Doubleline Emerging |
| Elfun Diversified |
Doubleline Emerging and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Elfun Diversified
The main advantage of trading using opposite Doubleline Emerging and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Emerging position performs unexpectedly, Elfun Diversified 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 Diversified will offset losses from the drop in Elfun Diversified's long position.The idea behind Doubleline Emerging Markets and Elfun Diversified Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Elfun Diversified vs. Shelton Emerging Markets | Elfun Diversified vs. Doubleline Emerging Markets | Elfun Diversified vs. Growth Strategy Fund | Elfun Diversified vs. Eagle Mlp Strategy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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