Correlation Between Elfun Diversified and Putnam Massachusetts
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Putnam Massachusetts 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 Putnam Massachusetts 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 Putnam Massachusetts Tax, you can compare the effects of market volatilities on Elfun Diversified and Putnam Massachusetts 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 Putnam Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Putnam Massachusetts.
Diversification Opportunities for Elfun Diversified and Putnam Massachusetts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Putnam Massachusetts Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Massachusetts Tax 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 Putnam Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Massachusetts Tax has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Putnam Massachusetts go up and down completely randomly.
Pair Corralation between Elfun Diversified and Putnam Massachusetts
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 2.37 times more return on investment than Putnam Massachusetts. However, Elfun Diversified is 2.37 times more volatile than Putnam Massachusetts Tax. It trades about 0.11 of its potential returns per unit of risk. Putnam Massachusetts Tax is currently generating about 0.06 per unit of risk. If you would invest 1,664 in Elfun Diversified Fund on September 12, 2024 and sell it today you would earn a total of 538.00 from holding Elfun Diversified Fund or generate 32.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Putnam Massachusetts Tax
Performance |
| Timeline |
| Elfun Diversified |
| Putnam Massachusetts Tax |
Elfun Diversified and Putnam Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Putnam Massachusetts
The main advantage of trading using opposite Elfun Diversified and Putnam Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Putnam Massachusetts 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 Putnam Massachusetts will offset losses from the drop in Putnam Massachusetts' 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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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