Correlation Between Elfun Trusts and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Gmo Emerging 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 Gmo Emerging 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 Gmo Emerging Markets, you can compare the effects of market volatilities on Elfun Trusts and Gmo Emerging 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 Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Gmo Emerging.
Diversification Opportunities for Elfun Trusts and Gmo Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Gmo Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Markets 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 Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Markets has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Gmo Emerging go up and down completely randomly.
Pair Corralation between Elfun Trusts and Gmo Emerging
If you would invest 5,868 in Elfun Trusts Elfun on December 4, 2024 and sell it today you would earn a total of 2,682 from holding Elfun Trusts Elfun or generate 45.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Gmo Emerging Markets
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Gmo Emerging Markets |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Elfun Trusts and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Gmo Emerging
The main advantage of trading using opposite Elfun Trusts and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Gmo Emerging 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Elfun Trusts vs. Versatile Bond Portfolio | Elfun Trusts vs. Ft 7934 Corporate | Elfun Trusts vs. Credit Suisse Multialternative | Elfun Trusts vs. Rbc Emerging Markets |
| Gmo Emerging vs. Tax Managed International Equity | Gmo Emerging vs. Guidemark E Fixed | Gmo Emerging vs. Pro Blend Servative Term | Gmo Emerging vs. Qs International Equity |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| 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 |