Correlation Between Eagle Mlp and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp 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 Eagle Mlp and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mlp Strategy and Elfun Diversified Fund, you can compare the effects of market volatilities on Eagle Mlp 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 Eagle Mlp with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Elfun Diversified.
Diversification Opportunities for Eagle Mlp and Elfun Diversified
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Elfun is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Eagle Mlp 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 Eagle Mlp Strategy 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 Eagle Mlp i.e., Eagle Mlp and Elfun Diversified go up and down completely randomly.
Pair Corralation between Eagle Mlp and Elfun Diversified
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 2.46 times more return on investment than Elfun Diversified. However, Eagle Mlp is 2.46 times more volatile than Elfun Diversified Fund. It trades about 0.66 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.28 per unit of risk. If you would invest 987.00 in Eagle Mlp Strategy on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Eagle Mlp Strategy or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mlp Strategy vs. Elfun Diversified Fund
Performance |
| Timeline |
| Eagle Mlp Strategy |
| Elfun Diversified |
Eagle Mlp and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mlp and Elfun Diversified
The main advantage of trading using opposite Eagle Mlp and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp 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.| Eagle Mlp vs. Artisan High Income | Eagle Mlp vs. Gmo High Yield | Eagle Mlp vs. Ambrus Core Bond | Eagle Mlp vs. Rationalpier 88 Convertible |
| Elfun Diversified vs. Morningstar Aggressive Growth | Elfun Diversified vs. Artisan High Income | Elfun Diversified vs. Metropolitan West High | Elfun Diversified vs. Ab Global Risk |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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