Correlation Between Elfun Trusts and Delaware Investments
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Delaware Investments 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 Delaware Investments 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 Delaware Investments Ultrashort, you can compare the effects of market volatilities on Elfun Trusts and Delaware Investments 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 Delaware Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Delaware Investments.
Diversification Opportunities for Elfun Trusts and Delaware Investments
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Elfun and Delaware is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Delaware Investments Ultrashor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Investments 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 Delaware Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Investments has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Delaware Investments go up and down completely randomly.
Pair Corralation between Elfun Trusts and Delaware Investments
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 8.53 times more return on investment than Delaware Investments. However, Elfun Trusts is 8.53 times more volatile than Delaware Investments Ultrashort. It trades about 0.13 of its potential returns per unit of risk. Delaware Investments Ultrashort is currently generating about 0.21 per unit of risk. If you would invest 7,629 in Elfun Trusts Elfun on September 14, 2024 and sell it today you would earn a total of 2,357 from holding Elfun Trusts Elfun or generate 30.9% 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. Delaware Investments Ultrashor
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Delaware Investments |
Elfun Trusts and Delaware Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Delaware Investments
The main advantage of trading using opposite Elfun Trusts and Delaware Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Delaware Investments 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 Delaware Investments will offset losses from the drop in Delaware Investments' long position.| Elfun Trusts vs. Fpa Queens Road | Elfun Trusts vs. Valic Company I | Elfun Trusts vs. Royce Opportunity Fund | Elfun Trusts vs. Vanguard Small Cap Value |
| Delaware Investments vs. Lord Abbett Diversified | Delaware Investments vs. Pioneer Diversified High | Delaware Investments vs. T Rowe Price | Delaware Investments vs. Pgim Jennison 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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