Correlation Between Elfun Trusts and Nasdaq CTA
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By analyzing existing cross correlation between Elfun Trusts Elfun and Nasdaq CTA Artificial, you can compare the effects of market volatilities on Elfun Trusts and Nasdaq CTA 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 Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Nasdaq CTA.
Diversification Opportunities for Elfun Trusts and Nasdaq CTA
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elfun and Nasdaq is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial 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 Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Nasdaq CTA go up and down completely randomly.
Pair Corralation between Elfun Trusts and Nasdaq CTA
Assuming the 90 days horizon Elfun Trusts is expected to generate 2.18 times less return on investment than Nasdaq CTA. But when comparing it to its historical volatility, Elfun Trusts Elfun is 1.72 times less risky than Nasdaq CTA. It trades about 0.11 of its potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 150,264 in Nasdaq CTA Artificial on September 19, 2024 and sell it today you would earn a total of 16,013 from holding Nasdaq CTA Artificial or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Nasdaq CTA Artificial
Performance |
| Timeline |
Elfun Trusts and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
Elfun Trusts Elfun
Pair trading matchups for Elfun Trusts
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with Elfun Trusts and Nasdaq CTA
The main advantage of trading using opposite Elfun Trusts and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA's long position.| Elfun Trusts vs. State Street Target | Elfun Trusts vs. State Street Target | Elfun Trusts vs. Ssga International Stock | Elfun Trusts vs. State Street Target |
| Nasdaq CTA vs. Lucid Group | Nasdaq CTA vs. Dana Inc | Nasdaq CTA vs. Thor Industries | Nasdaq CTA vs. PACCAR Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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