Correlation Between Dfa Intl and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Dfa Intl 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 Dfa Intl and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dfa Intl Core and Elfun Diversified Fund, you can compare the effects of market volatilities on Dfa Intl 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 Dfa Intl with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dfa Intl and Elfun Diversified.
Diversification Opportunities for Dfa Intl and Elfun Diversified
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dfa and Elfun is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dfa Intl Core and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Dfa Intl 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 Dfa Intl Core 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 Dfa Intl i.e., Dfa Intl and Elfun Diversified go up and down completely randomly.
Pair Corralation between Dfa Intl and Elfun Diversified
Assuming the 90 days horizon Dfa Intl is expected to generate 1.56 times less return on investment than Elfun Diversified. In addition to that, Dfa Intl is 1.49 times more volatile than Elfun Diversified Fund. It trades about 0.04 of its total potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.1 per unit of volatility. If you would invest 1,847 in Elfun Diversified Fund on September 12, 2024 and sell it today you would earn a total of 355.00 from holding Elfun Diversified Fund or generate 19.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dfa Intl Core vs. Elfun Diversified Fund
Performance |
| Timeline |
| Dfa Intl Core |
| Elfun Diversified |
Dfa Intl and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dfa Intl and Elfun Diversified
The main advantage of trading using opposite Dfa Intl and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dfa Intl 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.| Dfa Intl vs. Elfun Diversified Fund | Dfa Intl vs. Delaware Limited Term Diversified | Dfa Intl vs. Wilmington Diversified Income | Dfa Intl vs. Fulcrum Diversified Absolute |
| Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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