Correlation Between Elfun Government and Franklin
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Franklin 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 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 Government Money, you can compare the effects of market volatilities on Elfun Government and Franklin 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Franklin.
Diversification Opportunities for Elfun Government and Franklin
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 Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Elfun Government i.e., Elfun Government and Franklin go up and down completely randomly.
Pair Corralation between Elfun Government and Franklin
If you would invest 100.00 in Franklin Government Money on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Franklin 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 Government Money
Performance |
| Timeline |
| Elfun Government Money |
| Franklin Government Money |
Elfun Government and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Franklin
The main advantage of trading using opposite Elfun Government and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Franklin 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 will offset losses from the drop in Franklin's long position.| Elfun Government vs. American Funds Government | Elfun Government vs. Lord Abbett Government | Elfun Government vs. Dws Government Money | Elfun Government vs. Inverse Government Long |
| Franklin vs. Deutsche Real Estate | Franklin vs. Nuveen Real Estate | Franklin vs. Pender Real Estate | Franklin vs. Short Real Estate |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |