Correlation Between Elfun Government and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Retirement Living 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 Retirement Living 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 Retirement Living Through, you can compare the effects of market volatilities on Elfun Government and Retirement Living 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 Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Retirement Living.
Diversification Opportunities for Elfun Government and Retirement Living
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Retirement is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through 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 Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Elfun Government i.e., Elfun Government and Retirement Living go up and down completely randomly.
Pair Corralation between Elfun Government and Retirement Living
If you would invest 1,172 in Retirement Living Through on November 7, 2024 and sell it today you would earn a total of 70.00 from holding Retirement Living Through or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Elfun Government Money vs. Retirement Living Through
Performance |
| Timeline |
| Elfun Government Money |
| Retirement Living Through |
Elfun Government and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Retirement Living
The main advantage of trading using opposite Elfun Government and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living's long position.| Elfun Government vs. Financials Ultrasector Profund | Elfun Government vs. Schwab Government Money | Elfun Government vs. Edward Jones Money | Elfun Government vs. Putnam Money Market |
| Retirement Living vs. Regional Bank Fund | Retirement Living vs. Regional Bank Fund | Retirement Living vs. Multimanager Lifestyle Moderate | Retirement Living vs. Multimanager Lifestyle Balanced |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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