Correlation Between Elfun Government and Jpmorgan Income
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Jpmorgan Income 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 Income 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 Income Builder, you can compare the effects of market volatilities on Elfun Government and Jpmorgan Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Jpmorgan Income.
Diversification Opportunities for Elfun Government and Jpmorgan Income
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 Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Income Builder 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 Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Income Builder has no effect on the direction of Elfun Government i.e., Elfun Government and Jpmorgan Income go up and down completely randomly.
Pair Corralation between Elfun Government and Jpmorgan Income
If you would invest 994.00 in Jpmorgan Income Builder on September 15, 2024 and sell it today you would earn a total of 6.00 from holding Jpmorgan Income Builder or generate 0.6% 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 Income Builder
Performance |
| Timeline |
| Elfun Government Money |
| Jpmorgan Income Builder |
Elfun Government and Jpmorgan Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Jpmorgan Income
The main advantage of trading using opposite Elfun Government and Jpmorgan Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Jpmorgan Income 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 Income will offset losses from the drop in Jpmorgan Income'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 Income vs. Elfun Government Money | Jpmorgan Income vs. Short Term Government Fund | Jpmorgan Income vs. Federated Government Income | Jpmorgan Income vs. Us Government Securities |
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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