Correlation Between Elfun Government and Franklin Convertible
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Franklin Convertible 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 Franklin Convertible 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 Franklin Vertible Securities, you can compare the effects of market volatilities on Elfun Government and Franklin Convertible 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 Franklin Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Franklin Convertible.
Diversification Opportunities for Elfun Government and Franklin Convertible
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Franklin Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Convertible 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 Franklin Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Convertible has no effect on the direction of Elfun Government i.e., Elfun Government and Franklin Convertible go up and down completely randomly.
Pair Corralation between Elfun Government and Franklin Convertible
If you would invest 100.00 in Elfun Government Money on October 17, 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. Franklin Vertible Securities
Performance |
| Timeline |
| Elfun Government Money |
| Franklin Convertible |
Elfun Government and Franklin Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Franklin Convertible
The main advantage of trading using opposite Elfun Government and Franklin Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Franklin Convertible 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 Franklin Convertible will offset losses from the drop in Franklin Convertible's long position.| Elfun Government vs. Mid Cap 15x Strategy | Elfun Government vs. Wcm Focused Emerging | Elfun Government vs. Franklin Emerging Market | Elfun Government vs. Angel Oak Multi Strategy |
| Franklin Convertible vs. Ab Government Exchange | Franklin Convertible vs. Dws Government Money | Franklin Convertible vs. Elfun Government Money | Franklin Convertible vs. Putnam 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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