Correlation Between Elfun Trusts and SOUTHERN
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By analyzing existing cross correlation between Elfun Trusts Elfun and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Elfun Trusts and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and SOUTHERN.
Diversification Opportunities for Elfun Trusts and SOUTHERN
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elfun and SOUTHERN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and SOUTHERN go up and down completely randomly.
Pair Corralation between Elfun Trusts and SOUTHERN
Assuming the 90 days horizon Elfun Trusts is expected to generate 21.06 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, Elfun Trusts Elfun is 59.49 times less risky than SOUTHERN. It trades about 0.13 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,624 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would earn a total of 340.00 from holding SOUTHERN CALIF EDISON or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 73.48% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Elfun Trusts Elfun |
| SOUTHERN CALIF EDISON |
Elfun Trusts and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and SOUTHERN
The main advantage of trading using opposite Elfun Trusts and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Elfun Trusts vs. Elfun Government Money | Elfun Trusts vs. Elfun International Equity | Elfun Trusts vs. Elfun Income Fund | Elfun Trusts vs. Elfun Diversified Fund |
| SOUTHERN vs. LGI Homes | SOUTHERN vs. Algoma Steel Group | SOUTHERN vs. Insteel Industries | SOUTHERN vs. Lindblad Expeditions Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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