Correlation Between Elfun Government and The Hartford
Can any of the company-specific risk be diversified away by investing in both Elfun Government and The Hartford 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 The Hartford 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 The Hartford Capital, you can compare the effects of market volatilities on Elfun Government and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and The Hartford.
Diversification Opportunities for Elfun Government and The Hartford
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and The is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and The Hartford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Capital has no effect on the direction of Elfun Government i.e., Elfun Government and The Hartford go up and down completely randomly.
Pair Corralation between Elfun Government and The Hartford
If you would invest 4,622 in The Hartford Capital on September 4, 2024 and sell it today you would earn a total of 286.00 from holding The Hartford Capital or generate 6.19% 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. The Hartford Capital
Performance |
| Timeline |
| Elfun Government Money |
| Hartford Capital |
Elfun Government and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and The Hartford
The main advantage of trading using opposite Elfun Government and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Elfun Government vs. Dreyfus Natural Resources | Elfun Government vs. Gamco Natural Resources | Elfun Government vs. Adams Natural Resources | Elfun Government vs. Gmo Resources |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |