Correlation Between Elfun Government and Income Fund
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Income Fund 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 Income Fund 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 Income Fund Of, you can compare the effects of market volatilities on Elfun Government and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Income Fund.
Diversification Opportunities for Elfun Government and Income Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Income is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Income Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund has no effect on the direction of Elfun Government i.e., Elfun Government and Income Fund go up and down completely randomly.
Pair Corralation between Elfun Government and Income Fund
If you would invest 100.00 in Elfun Government Money on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Elfun Government Money or generate 0.0% 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. Income Fund Of
Performance |
| Timeline |
| Elfun Government Money |
| Income Fund |
Elfun Government and Income Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Income Fund
The main advantage of trading using opposite Elfun Government and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund'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 |
| Income Fund vs. Elfun Government Money | Income Fund vs. Schwab Treasury Money | Income Fund vs. General Money Market | Income Fund vs. Blackrock Exchange Portfolio |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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