Correlation Between Elfun Government and Ab Sustainable
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Ab Sustainable 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 Ab Sustainable 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 Ab Sustainable Global, you can compare the effects of market volatilities on Elfun Government and Ab Sustainable 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 Ab Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Ab Sustainable.
Diversification Opportunities for Elfun Government and Ab Sustainable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and ATEYX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Ab Sustainable Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Sustainable Global 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 Ab Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Sustainable Global has no effect on the direction of Elfun Government i.e., Elfun Government and Ab Sustainable go up and down completely randomly.
Pair Corralation between Elfun Government and Ab Sustainable
Assuming the 90 days horizon Elfun Government Money is expected to generate 33.51 times more return on investment than Ab Sustainable. However, Elfun Government is 33.51 times more volatile than Ab Sustainable Global. It trades about 0.06 of its potential returns per unit of risk. Ab Sustainable Global is currently generating about 0.05 per unit of risk. If you would invest 366.00 in Elfun Government Money on September 13, 2024 and sell it today you would lose (266.00) from holding Elfun Government Money or give up 72.68% 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. Ab Sustainable Global
Performance |
| Timeline |
| Elfun Government Money |
| Ab Sustainable Global |
Elfun Government and Ab Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Ab Sustainable
The main advantage of trading using opposite Elfun Government and Ab Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Ab Sustainable 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 Ab Sustainable will offset losses from the drop in Ab Sustainable's long position.| Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard 500 Index | Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard Total Stock |
| Ab Sustainable vs. Money Market Obligations | Ab Sustainable vs. Prudential Government Money | Ab Sustainable vs. Elfun Government Money | Ab Sustainable vs. Cref Money 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |