Correlation Between Elfun Government and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Hartford Growth 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 Hartford Growth 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 Growth, you can compare the effects of market volatilities on Elfun Government and Hartford Growth 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 Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Hartford Growth.
Diversification Opportunities for Elfun Government and Hartford Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Hartford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Elfun Government i.e., Elfun Government and Hartford Growth go up and down completely randomly.
Pair Corralation between Elfun Government and Hartford Growth
Assuming the 90 days horizon Elfun Government Money is expected to generate 21.18 times more return on investment than Hartford Growth. However, Elfun Government is 21.18 times more volatile than The Hartford Growth. It trades about 0.05 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.14 per unit of risk. If you would invest 96.00 in Elfun Government Money on September 15, 2024 and sell it today you would earn a total of 4.00 from holding Elfun Government Money or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.18% |
| Values | Daily Returns |
Elfun Government Money vs. The Hartford Growth
Performance |
| Timeline |
| Elfun Government Money |
| Hartford Growth |
Elfun Government and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Hartford Growth
The main advantage of trading using opposite Elfun Government and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Hartford Growth 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard 500 Index | Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard Total Stock |
| Hartford Growth vs. Ab Government Exchange | Hartford Growth vs. Elfun Government Money | Hartford Growth vs. Money Market Obligations | Hartford Growth vs. Schwab Treasury Money |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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