Correlation Between Elfun Diversified and Timothy Aggressive
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Timothy Aggressive 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 Timothy Aggressive 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 Timothy Aggressive Growth, you can compare the effects of market volatilities on Elfun Diversified and Timothy Aggressive 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 Timothy Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Timothy Aggressive.
Diversification Opportunities for Elfun Diversified and Timothy Aggressive
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elfun and Timothy is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Timothy Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Aggressive Growth 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 Timothy Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Aggressive Growth has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Timothy Aggressive go up and down completely randomly.
Pair Corralation between Elfun Diversified and Timothy Aggressive
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 0.15 times more return on investment than Timothy Aggressive. However, Elfun Diversified Fund is 6.79 times less risky than Timothy Aggressive. It trades about 0.23 of its potential returns per unit of risk. Timothy Aggressive Growth is currently generating about -0.18 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Timothy Aggressive Growth
Performance |
| Timeline |
| Elfun Diversified |
| Timothy Aggressive Growth |
Elfun Diversified and Timothy Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Timothy Aggressive
The main advantage of trading using opposite Elfun Diversified and Timothy Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Timothy Aggressive 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 Timothy Aggressive will offset losses from the drop in Timothy Aggressive'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 |
| Timothy Aggressive vs. Artisan Global Unconstrained | Timothy Aggressive vs. Investec Global Franchise | Timothy Aggressive vs. 361 Global Longshort | Timothy Aggressive vs. Mirova Global Green |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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