Correlation Between Elfun Government and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Growth Allocation 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 Growth Allocation 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 Growth Allocation Index, you can compare the effects of market volatilities on Elfun Government and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Growth Allocation.
Diversification Opportunities for Elfun Government and Growth Allocation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Growth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Growth Allocation Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation Index 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation Index has no effect on the direction of Elfun Government i.e., Elfun Government and Growth Allocation go up and down completely randomly.
Pair Corralation between Elfun Government and Growth Allocation
If you would invest 1,098 in Growth Allocation Index on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Growth Allocation Index or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Elfun Government Money vs. Growth Allocation Index
Performance |
| Timeline |
| Elfun Government Money |
| Growth Allocation Index |
Elfun Government and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Growth Allocation
The main advantage of trading using opposite Elfun Government and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Elfun Government vs. Ultra Short Fixed Income | Elfun Government vs. Enhanced Fixed Income | Elfun Government vs. Locorr Dynamic Equity | Elfun Government vs. Gmo International Equity |
| Growth Allocation vs. Ab Bond Inflation | Growth Allocation vs. Ab Global Bond | Growth Allocation vs. Multisector Bond Sma | Growth Allocation vs. Ab Bond Inflation |
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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