Correlation Between Elfun Government and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Calvert Emerging 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 Calvert Emerging 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 Calvert Emerging Markets, you can compare the effects of market volatilities on Elfun Government and Calvert Emerging 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Calvert Emerging.
Diversification Opportunities for Elfun Government and Calvert Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Calvert is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Elfun Government i.e., Elfun Government and Calvert Emerging go up and down completely randomly.
Pair Corralation between Elfun Government and Calvert Emerging
If you would invest 1,160 in Calvert Emerging Markets on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Calvert Emerging Markets or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Government Money vs. Calvert Emerging Markets
Performance |
| Timeline |
| Elfun Government Money |
| Calvert Emerging Markets |
Elfun Government and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Calvert Emerging
The main advantage of trading using opposite Elfun Government and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Calvert Emerging 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 Calvert Emerging will offset losses from the drop in Calvert Emerging'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 |
| Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert International Responsible |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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