Correlation Between Dreyfus/standish and Elfun Trusts
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish 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 Dreyfus/standish and Elfun Trusts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Elfun Trusts Elfun, you can compare the effects of market volatilities on Dreyfus/standish 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 Dreyfus/standish with a short position of Elfun Trusts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Elfun Trusts.
Diversification Opportunities for Dreyfus/standish and Elfun Trusts
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dreyfus/standish and Elfun is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed 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 Dreyfus/standish 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 Dreyfusstandish Global Fixed 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 Dreyfus/standish i.e., Dreyfus/standish and Elfun Trusts go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Elfun Trusts
Assuming the 90 days horizon Dreyfus/standish is expected to generate 15.32 times less return on investment than Elfun Trusts. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 5.95 times less risky than Elfun Trusts. It trades about 0.02 of its potential returns per unit of risk. Elfun Trusts Elfun is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,620 in Elfun Trusts Elfun on November 3, 2024 and sell it today you would earn a total of 437.00 from holding Elfun Trusts Elfun or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Elfun Trusts Elfun
Performance |
| Timeline |
| Dreyfusstandish Global |
| Elfun Trusts Elfun |
Dreyfus/standish and Elfun Trusts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Elfun Trusts
The main advantage of trading using opposite Dreyfus/standish and Elfun Trusts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish 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.| Dreyfus/standish vs. T Rowe Price | Dreyfus/standish vs. Fm Investments Large | Dreyfus/standish vs. Transamerica Asset Allocation | Dreyfus/standish vs. Morningstar Global Income |
| Elfun Trusts vs. Praxis Genesis Growth | Elfun Trusts vs. Rational Defensive Growth | Elfun Trusts vs. Stringer Growth Fund | Elfun Trusts vs. Qs Defensive Growth |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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