Correlation Between Elfun Government and Jp Morgan
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Jp Morgan 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 Jp Morgan 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 Jp Morgan Smartretirement, you can compare the effects of market volatilities on Elfun Government and Jp Morgan 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 Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Jp Morgan.
Diversification Opportunities for Elfun Government and Jp Morgan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and JTSQX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement 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 Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Elfun Government i.e., Elfun Government and Jp Morgan go up and down completely randomly.
Pair Corralation between Elfun Government and Jp Morgan
If you would invest 100.00 in Elfun Government Money on October 9, 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 | 100.0% |
| Values | Daily Returns |
Elfun Government Money vs. Jp Morgan Smartretirement
Performance |
| Timeline |
| Elfun Government Money |
| Jp Morgan Smartretirement |
Elfun Government and Jp Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Jp Morgan
The main advantage of trading using opposite Elfun Government and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Jp Morgan 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 Jp Morgan will offset losses from the drop in Jp Morgan's long position.| Elfun Government vs. Franklin Small Cap | Elfun Government vs. Needham Small Cap | Elfun Government vs. Champlain Small | Elfun Government vs. Touchstone Small Cap |
| Jp Morgan vs. Pace High Yield | Jp Morgan vs. Lord Abbett Short | Jp Morgan vs. Needham Aggressive Growth | Jp Morgan vs. Ab High Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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