Correlation Between Elfun Trusts and Money Market
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Money Market 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 Money Market 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 Money Market Obligations, you can compare the effects of market volatilities on Elfun Trusts and Money Market 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 Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Money Market.
Diversification Opportunities for Elfun Trusts and Money Market
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elfun and Money is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations 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 Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Money Market go up and down completely randomly.
Pair Corralation between Elfun Trusts and Money Market
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 6.88 times more return on investment than Money Market. However, Elfun Trusts is 6.88 times more volatile than Money Market Obligations. It trades about 0.13 of its potential returns per unit of risk. Money Market Obligations is currently generating about 0.13 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Money Market Obligations
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Money Market Obligations |
Elfun Trusts and Money Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Money Market
The main advantage of trading using opposite Elfun Trusts and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's 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 |
| Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard 500 Index | Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard Total Stock |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |