Correlation Between Elfun Diversified and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Ing Intermediate 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 Ing Intermediate 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 Ing Intermediate Bond, you can compare the effects of market volatilities on Elfun Diversified and Ing Intermediate 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 Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Ing Intermediate.
Diversification Opportunities for Elfun Diversified and Ing Intermediate
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elfun and Ing is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate Bond 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 Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Ing Intermediate go up and down completely randomly.
Pair Corralation between Elfun Diversified and Ing Intermediate
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 1.26 times more return on investment than Ing Intermediate. However, Elfun Diversified is 1.26 times more volatile than Ing Intermediate Bond. It trades about 0.23 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about 0.21 per unit of risk. If you would invest 2,174 in Elfun Diversified Fund on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Elfun Diversified Fund or generate 1.56% 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. Ing Intermediate Bond
Performance |
| Timeline |
| Elfun Diversified |
| Ing Intermediate Bond |
Elfun Diversified and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Ing Intermediate
The main advantage of trading using opposite Elfun Diversified and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Ing Intermediate 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 Ing Intermediate will offset losses from the drop in Ing Intermediate's long position.| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
| Ing Intermediate vs. Lord Abbett Diversified | Ing Intermediate vs. Federated Hermes Conservative | Ing Intermediate vs. Fulcrum Diversified Absolute | Ing Intermediate vs. Elfun Diversified Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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