Correlation Between Elfun Government and Dws Government
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Dws Government 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 Dws Government 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 Dws Government Money, you can compare the effects of market volatilities on Elfun Government and Dws Government 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 Dws Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Dws Government.
Diversification Opportunities for Elfun Government and Dws Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Dws is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Dws Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dws 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 Dws Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dws Government Money has no effect on the direction of Elfun Government i.e., Elfun Government and Dws Government go up and down completely randomly.
Pair Corralation between Elfun Government and Dws Government
Assuming the 90 days horizon Elfun Government Money is expected to generate 6.51 times more return on investment than Dws Government. However, Elfun Government is 6.51 times more volatile than Dws Government Money. It trades about 0.05 of its potential returns per unit of risk. Dws Government Money is currently generating about -0.06 per unit of risk. If you would invest 373.00 in Elfun Government Money on October 20, 2024 and sell it today you would lose (273.00) from holding Elfun Government Money or give up 73.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 52.57% |
| Values | Daily Returns |
Elfun Government Money vs. Dws Government Money
Performance |
| Timeline |
| Elfun Government Money |
| Dws Government Money |
Elfun Government and Dws Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Dws Government
The main advantage of trading using opposite Elfun Government and Dws Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Dws Government 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 Dws Government will offset losses from the drop in Dws Government's long position.| Elfun Government vs. Fulcrum Diversified Absolute | Elfun Government vs. Delaware Limited Term Diversified | Elfun Government vs. Tax Managed Mid Small | Elfun Government vs. Northern Small Cap |
| Dws Government vs. Short Duration Inflation | Dws Government vs. Tiaa Cref Inflation Linked Bond | Dws Government vs. Credit Suisse Multialternative | Dws Government vs. Lord Abbett 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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