Correlation Between Elfun Trusts and Ssga International
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Ssga International 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 Ssga International 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 Ssga International Stock, you can compare the effects of market volatilities on Elfun Trusts and Ssga International 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 Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Ssga International.
Diversification Opportunities for Elfun Trusts and Ssga International
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elfun and Ssga is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock 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 Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Ssga International go up and down completely randomly.
Pair Corralation between Elfun Trusts and Ssga International
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 0.99 times more return on investment than Ssga International. However, Elfun Trusts Elfun is 1.01 times less risky than Ssga International. It trades about 0.11 of its potential returns per unit of risk. Ssga International Stock is currently generating about -0.01 per unit of risk. If you would invest 8,785 in Elfun Trusts Elfun on August 29, 2024 and sell it today you would earn a total of 1,067 from holding Elfun Trusts Elfun or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Ssga International Stock
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Ssga International Stock |
Elfun Trusts and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Ssga International
The main advantage of trading using opposite Elfun Trusts and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Ssga International 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 Ssga International will offset losses from the drop in Ssga International'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 |
| Ssga International vs. HUMANA INC | Ssga International vs. Aquagold International | Ssga International vs. Barloworld Ltd ADR | Ssga International vs. Morningstar Unconstrained Allocation |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |