Correlation Between Elfun Government and Johcm Global
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Johcm Global 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 Johcm Global 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 Johcm Global Income, you can compare the effects of market volatilities on Elfun Government and Johcm Global 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 Johcm Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Johcm Global.
Diversification Opportunities for Elfun Government and Johcm Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Johcm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Johcm Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johcm Global Income 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 Johcm Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johcm Global Income has no effect on the direction of Elfun Government i.e., Elfun Government and Johcm Global go up and down completely randomly.
Pair Corralation between Elfun Government and Johcm Global
If you would invest 973.00 in Johcm Global Income on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Johcm Global Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Elfun Government Money vs. Johcm Global Income
Performance |
| Timeline |
| Elfun Government Money |
| Johcm Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elfun Government and Johcm Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Johcm Global
The main advantage of trading using opposite Elfun Government and Johcm Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Johcm Global 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 Johcm Global will offset losses from the drop in Johcm Global'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 |
| Johcm Global vs. Us Government Securities | Johcm Global vs. Dws Government Money | Johcm Global vs. Franklin Adjustable Government | Johcm Global vs. Elfun Government 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |