Correlation Between Elfun Government and Jpmorgan Small
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Jpmorgan Small 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 Jpmorgan Small 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 Jpmorgan Small Cap, you can compare the effects of market volatilities on Elfun Government and Jpmorgan Small 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 Jpmorgan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Jpmorgan Small.
Diversification Opportunities for Elfun Government and Jpmorgan Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Jpmorgan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Small Cap 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 Jpmorgan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Small Cap has no effect on the direction of Elfun Government i.e., Elfun Government and Jpmorgan Small go up and down completely randomly.
Pair Corralation between Elfun Government and Jpmorgan Small
If you would invest 100.00 in Elfun Government Money on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Elfun Government Money or generate 0.0% 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. Jpmorgan Small Cap
Performance |
| Timeline |
| Elfun Government Money |
| Jpmorgan Small Cap |
Elfun Government and Jpmorgan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Jpmorgan Small
The main advantage of trading using opposite Elfun Government and Jpmorgan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Jpmorgan Small 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 Jpmorgan Small will offset losses from the drop in Jpmorgan Small'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 |
| Jpmorgan Small vs. Dreyfus Government Cash | Jpmorgan Small vs. Elfun Government Money | Jpmorgan Small vs. Davis Government Bond | Jpmorgan Small vs. Virtus Seix Government |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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