Correlation Between Elfun Government and Federated Institutional
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Federated Institutional 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 Federated Institutional 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 Federated Institutional High, you can compare the effects of market volatilities on Elfun Government and Federated Institutional 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 Federated Institutional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Federated Institutional.
Diversification Opportunities for Elfun Government and Federated Institutional
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Federated Institutional High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Institutional 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 Federated Institutional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Institutional has no effect on the direction of Elfun Government i.e., Elfun Government and Federated Institutional go up and down completely randomly.
Pair Corralation between Elfun Government and Federated Institutional
If you would invest 895.00 in Federated Institutional High on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Federated Institutional High or generate 0.22% 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. Federated Institutional High
Performance |
| Timeline |
| Elfun Government Money |
| Federated Institutional |
Elfun Government and Federated Institutional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Federated Institutional
The main advantage of trading using opposite Elfun Government and Federated Institutional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Federated Institutional 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 Federated Institutional will offset losses from the drop in Federated Institutional'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |