Correlation Between Elfun Government and Aberdeen Emerging
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Aberdeen Emerging 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 Aberdeen Emerging 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 Aberdeen Emerging Markets, you can compare the effects of market volatilities on Elfun Government and Aberdeen Emerging 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 Aberdeen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Aberdeen Emerging.
Diversification Opportunities for Elfun Government and Aberdeen Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Aberdeen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Aberdeen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Emerging Markets 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 Aberdeen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Emerging Markets has no effect on the direction of Elfun Government i.e., Elfun Government and Aberdeen Emerging go up and down completely randomly.
Pair Corralation between Elfun Government and Aberdeen Emerging
If you would invest 1,342 in Aberdeen Emerging Markets on November 9, 2024 and sell it today you would earn a total of 28.00 from holding Aberdeen Emerging Markets or generate 2.09% 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. Aberdeen Emerging Markets
Performance |
| Timeline |
| Elfun Government Money |
| Aberdeen Emerging Markets |
Elfun Government and Aberdeen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Aberdeen Emerging
The main advantage of trading using opposite Elfun Government and Aberdeen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Aberdeen Emerging 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 Aberdeen Emerging will offset losses from the drop in Aberdeen Emerging's long position.| Elfun Government vs. Enhanced Large Pany | Elfun Government vs. Jpmorgan Global Allocation | Elfun Government vs. Mutual Of America | Elfun Government vs. Oppenheimer Global Allocation |
| Aberdeen Emerging vs. Financials Ultrasector Profund | Aberdeen Emerging vs. Prudential Financial Services | Aberdeen Emerging vs. 1919 Financial Services | Aberdeen Emerging vs. Gabelli Global Financial |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |