Correlation Between Elfun Diversified and Victory High
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Victory High 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 Victory High 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 Victory High Income, you can compare the effects of market volatilities on Elfun Diversified and Victory High 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 Victory High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Victory High.
Diversification Opportunities for Elfun Diversified and Victory High
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elfun and Victory is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Victory High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory High Income 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 Victory High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory High Income has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Victory High go up and down completely randomly.
Pair Corralation between Elfun Diversified and Victory High
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 1.44 times more return on investment than Victory High. However, Elfun Diversified is 1.44 times more volatile than Victory High Income. It trades about 0.1 of its potential returns per unit of risk. Victory High Income is currently generating about 0.1 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Victory High Income
Performance |
| Timeline |
| Elfun Diversified |
| Victory High Income |
Elfun Diversified and Victory High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Victory High
The main advantage of trading using opposite Elfun Diversified and Victory High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Victory High 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 Victory High will offset losses from the drop in Victory High'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 |
| Victory High vs. Guggenheim Diversified Income | Victory High vs. Elfun Diversified Fund | Victory High vs. Tax Free Conservative Income | Victory High vs. Fidelity Advisor Diversified |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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