Correlation Between Elfun Trusts and Centre Global
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Centre Global 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 Trusts and Centre Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Trusts Elfun and Centre Global Infrastructure, you can compare the effects of market volatilities on Elfun Trusts and Centre Global 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 Trusts with a short position of Centre Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Centre Global.
Diversification Opportunities for Elfun Trusts and Centre Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elfun and Centre is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Centre Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Global Infras and Elfun Trusts 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 Trusts Elfun are associated (or correlated) with Centre Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Global Infras has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Centre Global go up and down completely randomly.
Pair Corralation between Elfun Trusts and Centre Global
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 1.06 times more return on investment than Centre Global. However, Elfun Trusts is 1.06 times more volatile than Centre Global Infrastructure. It trades about 0.11 of its potential returns per unit of risk. Centre Global Infrastructure is currently generating about 0.0 per unit of risk. If you would invest 9,746 in Elfun Trusts Elfun on September 13, 2024 and sell it today you would earn a total of 313.00 from holding Elfun Trusts Elfun or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Centre Global Infrastructure
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Centre Global Infras |
Elfun Trusts and Centre Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Centre Global
The main advantage of trading using opposite Elfun Trusts and Centre Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Centre Global 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 Centre Global will offset losses from the drop in Centre Global's long position.| Elfun Trusts vs. T Rowe Price | Elfun Trusts vs. Kinetics Market Opportunities | Elfun Trusts vs. Barings Emerging Markets | Elfun Trusts vs. Calvert Developed Market |
| Centre Global vs. Blackrock Conservative Prprdptfinstttnl | Centre Global vs. Allianzgi Diversified Income | Centre Global vs. Elfun Diversified Fund | Centre Global vs. Stone Ridge 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |