Correlation Between Eic Value and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Elfun Diversified Fund, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Elfun Diversified.
Diversification Opportunities for Eic Value and Elfun Diversified
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eic and ELFUN is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Eic Value 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 Eic Value Fund 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 Eic Value i.e., Eic Value and Elfun Diversified go up and down completely randomly.
Pair Corralation between Eic Value and Elfun Diversified
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.59 times more return on investment than Elfun Diversified. However, Eic Value Fund is 1.71 times less risky than Elfun Diversified. It trades about 0.33 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about -0.07 per unit of risk. If you would invest 1,680 in Eic Value Fund on October 23, 2024 and sell it today you would earn a total of 70.00 from holding Eic Value Fund or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Eic Value Fund vs. Elfun Diversified Fund
Performance |
| Timeline |
| Eic Value Fund |
| Elfun Diversified |
Eic Value and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Elfun Diversified
The main advantage of trading using opposite Eic Value and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Red Oak Technology | Eic Value vs. Fa 529 Aggressive | Eic Value vs. Qs Large Cap | Eic Value vs. Fwnhtx |
| Elfun Diversified vs. Lord Abbett Diversified | Elfun Diversified vs. Shelton Funds | Elfun Diversified vs. Locorr Dynamic Equity | Elfun Diversified vs. Nuveen New Jersey |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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