Correlation Between Elfun Government and Inflation-adjusted
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Inflation-adjusted 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 Government and Inflation-adjusted into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Inflation Adjusted Bond Fund, you can compare the effects of market volatilities on Elfun Government and Inflation-adjusted 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 Government with a short position of Inflation-adjusted. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Inflation-adjusted.
Diversification Opportunities for Elfun Government and Inflation-adjusted
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Inflation-adjusted is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Inflation Adjusted Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Adjusted Bond and Elfun Government 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 Government Money are associated (or correlated) with Inflation-adjusted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Adjusted Bond has no effect on the direction of Elfun Government i.e., Elfun Government and Inflation-adjusted go up and down completely randomly.
Pair Corralation between Elfun Government and Inflation-adjusted
Assuming the 90 days horizon Elfun Government Money is expected to generate 74.15 times more return on investment than Inflation-adjusted. However, Elfun Government is 74.15 times more volatile than Inflation Adjusted Bond Fund. It trades about 0.05 of its potential returns per unit of risk. Inflation Adjusted Bond Fund is currently generating about 0.03 per unit of risk. If you would invest 394.00 in Elfun Government Money on November 6, 2024 and sell it today you would lose (294.00) from holding Elfun Government Money or give up 74.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.82% |
| Values | Daily Returns |
Elfun Government Money vs. Inflation Adjusted Bond Fund
Performance |
| Timeline |
| Elfun Government Money |
| Inflation Adjusted Bond |
Elfun Government and Inflation-adjusted Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Inflation-adjusted
The main advantage of trading using opposite Elfun Government and Inflation-adjusted positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Inflation-adjusted 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 Inflation-adjusted will offset losses from the drop in Inflation-adjusted's long position.| Elfun Government vs. Financials Ultrasector Profund | Elfun Government vs. Schwab Government Money | Elfun Government vs. Edward Jones Money | Elfun Government vs. Putnam Money Market |
| Inflation-adjusted vs. Mid Cap Value | Inflation-adjusted vs. Equity Growth Fund | Inflation-adjusted vs. Income Growth Fund | Inflation-adjusted vs. Diversified Bond Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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