Correlation Between Elfun Government and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Ab Municipal 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 Municipal 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 Municipal Bond, you can compare the effects of market volatilities on Elfun Government and Ab Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Ab Municipal.
Diversification Opportunities for Elfun Government and Ab Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and AUNTX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal 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 Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Elfun Government i.e., Elfun Government and Ab Municipal go up and down completely randomly.
Pair Corralation between Elfun Government and Ab Municipal
If you would invest 1,074 in Ab Municipal Bond on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Ab Municipal Bond or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elfun Government Money vs. Ab Municipal Bond
Performance |
| Timeline |
| Elfun Government Money |
| Ab Municipal Bond |
Elfun Government and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Ab Municipal
The main advantage of trading using opposite Elfun Government and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Ab Municipal 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 Municipal will offset losses from the drop in Ab Municipal'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 Municipal vs. Aig Government Money | Ab Municipal vs. Franklin Government Money | Ab Municipal vs. Elfun Government Money | Ab Municipal vs. Ubs Money Series |
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 Stocks Directory module to find actively traded stocks across global markets.
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