Correlation Between Elfun Government and First Investors
Can any of the company-specific risk be diversified away by investing in both Elfun Government and First Investors 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 First Investors 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 First Investors Total, you can compare the effects of market volatilities on Elfun Government and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and First Investors.
Diversification Opportunities for Elfun Government and First Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Elfun Government i.e., Elfun Government and First Investors go up and down completely randomly.
Pair Corralation between Elfun Government and First Investors
If you would invest 1,377 in First Investors Total on October 23, 2024 and sell it today you would earn a total of 0.00 from holding First Investors Total or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Elfun Government Money vs. First Investors Total
Performance |
| Timeline |
| Elfun Government Money |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elfun Government and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and First Investors
The main advantage of trading using opposite Elfun Government and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Elfun Government vs. Sp Smallcap 600 | Elfun Government vs. Lebenthal Lisanti Small | Elfun Government vs. T Rowe Price | Elfun Government vs. Qs Growth Fund |
| First Investors vs. Greenspring Fund Retail | First Investors vs. Smallcap World Fund | First Investors vs. Doubleline Core Fixed | First Investors vs. Aqr Long Short Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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