Correlation Between Elfun Trusts and State Street
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Elfun Trusts and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and State Street.
Diversification Opportunities for Elfun Trusts and State Street
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and State is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and State Street go up and down completely randomly.
Pair Corralation between Elfun Trusts and State Street
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 2.36 times more return on investment than State Street. However, Elfun Trusts is 2.36 times more volatile than State Street Aggregate. It trades about 0.13 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.05 per unit of risk. If you would invest 9,651 in Elfun Trusts Elfun on August 29, 2024 and sell it today you would earn a total of 243.00 from holding Elfun Trusts Elfun or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. State Street Aggregate
Performance |
| Timeline |
| Elfun Trusts Elfun |
| State Street Aggregate |
Elfun Trusts and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and State Street
The main advantage of trading using opposite Elfun Trusts and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Elfun Trusts vs. Mesirow Financial Small | Elfun Trusts vs. Barings Active Short | Elfun Trusts vs. Bbh Intermediate Municipal | Elfun Trusts vs. Transamerica Funds |
| State Street vs. Transamerica Large Cap | State Street vs. Pace Large Value | State Street vs. Tax Managed Large Cap | State Street vs. Aqr Large Cap |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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