Correlation Between Elfun Diversified and Hartford Checks
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Hartford Checks 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 Elfun Diversified and Hartford Checks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and The Hartford Checks, you can compare the effects of market volatilities on Elfun Diversified and Hartford Checks 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 Elfun Diversified with a short position of Hartford Checks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Hartford Checks.
Diversification Opportunities for Elfun Diversified and Hartford Checks
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elfun and Hartford is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and The Hartford Checks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Checks and Elfun Diversified 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 Elfun Diversified Fund are associated (or correlated) with Hartford Checks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Checks has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Hartford Checks go up and down completely randomly.
Pair Corralation between Elfun Diversified and Hartford Checks
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 0.87 times more return on investment than Hartford Checks. However, Elfun Diversified Fund is 1.15 times less risky than Hartford Checks. It trades about -0.12 of its potential returns per unit of risk. The Hartford Checks is currently generating about -0.23 per unit of risk. If you would invest 2,070 in Elfun Diversified Fund on December 31, 2024 and sell it today you would lose (31.00) from holding Elfun Diversified Fund or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. The Hartford Checks
Performance |
| Timeline |
| Elfun Diversified |
| Hartford Checks |
Elfun Diversified and Hartford Checks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Hartford Checks
The main advantage of trading using opposite Elfun Diversified and Hartford Checks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Hartford Checks 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 Hartford Checks will offset losses from the drop in Hartford Checks' long position.| Elfun Diversified vs. Putnam Global Financials | Elfun Diversified vs. Fidelity Advisor Financial | Elfun Diversified vs. Davis Financial Fund | Elfun Diversified vs. Rmb Mendon Financial |
| Hartford Checks vs. The Hartford Growth | Hartford Checks vs. The Hartford Growth | Hartford Checks vs. The Hartford Growth | Hartford Checks vs. The Hartford 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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