Correlation Between Elfun Diversified and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Harding Loevner 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 Harding Loevner 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 Harding Loevner International, you can compare the effects of market volatilities on Elfun Diversified and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Harding Loevner.
Diversification Opportunities for Elfun Diversified and Harding Loevner
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Elfun and Harding is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Inte has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Harding Loevner go up and down completely randomly.
Pair Corralation between Elfun Diversified and Harding Loevner
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 0.69 times more return on investment than Harding Loevner. However, Elfun Diversified Fund is 1.45 times less risky than Harding Loevner. It trades about 0.1 of its potential returns per unit of risk. Harding Loevner International is currently generating about 0.04 per unit of risk. 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 |
Elfun Diversified Fund vs. Harding Loevner International
Performance |
| Timeline |
| Elfun Diversified |
| Harding Loevner Inte |
Elfun Diversified and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Harding Loevner
The main advantage of trading using opposite Elfun Diversified and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of |
| Harding Loevner vs. Stone Ridge Diversified | Harding Loevner vs. Guggenheim Diversified Income | Harding Loevner vs. Elfun Diversified Fund | Harding Loevner vs. Aqr Diversified Arbitrage |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |