Correlation Between Elfun Trusts and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and Intermediate-term 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 Intermediate-term 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 Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Elfun Trusts and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Intermediate-term.
Diversification Opportunities for Elfun Trusts and Intermediate-term
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elfun and Intermediate-term is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Tax 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Intermediate-term go up and down completely randomly.
Pair Corralation between Elfun Trusts and Intermediate-term
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 6.07 times more return on investment than Intermediate-term. However, Elfun Trusts is 6.07 times more volatile than Intermediate Term Tax Free Bond. It trades about 0.04 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.05 per unit of risk. If you would invest 8,224 in Elfun Trusts Elfun on November 7, 2024 and sell it today you would earn a total of 821.00 from holding Elfun Trusts Elfun or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Intermediate Term Tax |
Elfun Trusts and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Intermediate-term
The main advantage of trading using opposite Elfun Trusts and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Elfun Trusts vs. Fulcrum Diversified Absolute | Elfun Trusts vs. Jpmorgan Diversified Fund | Elfun Trusts vs. Guggenheim Diversified Income | Elfun Trusts vs. Harbor Diversified International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |