Correlation Between Elfun Trusts and MQGAU
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By analyzing existing cross correlation between Elfun Trusts Elfun and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Elfun Trusts and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and MQGAU.
Diversification Opportunities for Elfun Trusts and MQGAU
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elfun and MQGAU is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and MQGAU go up and down completely randomly.
Pair Corralation between Elfun Trusts and MQGAU
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 7.26 times more return on investment than MQGAU. However, Elfun Trusts is 7.26 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.17 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about 0.13 per unit of risk. If you would invest 9,348 in Elfun Trusts Elfun on September 12, 2024 and sell it today you would earn a total of 711.00 from holding Elfun Trusts Elfun or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.69% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. MQGAU 5376057 23 SEP 27
Performance |
| Timeline |
| Elfun Trusts Elfun |
| MQGAU 5376057 23 |
Elfun Trusts and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and MQGAU
The main advantage of trading using opposite Elfun Trusts and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| Elfun Trusts vs. T Rowe Price | Elfun Trusts vs. Kinetics Market Opportunities | Elfun Trusts vs. Barings Emerging Markets | Elfun Trusts vs. Calvert Developed Market |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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