Correlation Between Elfun Government and Global Technology
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Global Technology 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 Global Technology 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 Global Technology Portfolio, you can compare the effects of market volatilities on Elfun Government and Global Technology 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 Global Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Global Technology.
Diversification Opportunities for Elfun Government and Global Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Global Technology Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Technology 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 Global Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Technology has no effect on the direction of Elfun Government i.e., Elfun Government and Global Technology go up and down completely randomly.
Pair Corralation between Elfun Government and Global Technology
If you would invest 2,148 in Global Technology Portfolio on October 28, 2024 and sell it today you would earn a total of 62.00 from holding Global Technology Portfolio or generate 2.89% 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. Global Technology Portfolio
Performance |
Timeline |
Elfun Government Money |
Global Technology |
Elfun Government and Global Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elfun Government and Global Technology
The main advantage of trading using opposite Elfun Government and Global Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Global Technology 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 Global Technology will offset losses from the drop in Global Technology's long position.Elfun Government vs. Goldman Sachs Mlp | Elfun Government vs. Virtus Select Mlp | Elfun Government vs. Invesco Energy Fund | Elfun Government vs. Salient Mlp Energy |
Global Technology vs. Firsthand Technology Opportunities | Global Technology vs. Invesco Technology Fund | Global Technology vs. Mfs Technology Fund | Global Technology vs. Technology Ultrasector Profund |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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