Correlation Between Elfun Government and Blackrock Advantage
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Blackrock Advantage 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 Blackrock Advantage 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 Blackrock Advantage Total, you can compare the effects of market volatilities on Elfun Government and Blackrock Advantage 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 Blackrock Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Blackrock Advantage.
Diversification Opportunities for Elfun Government and Blackrock Advantage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Blackrock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Blackrock Advantage Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Advantage Total 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 Blackrock Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Advantage Total has no effect on the direction of Elfun Government i.e., Elfun Government and Blackrock Advantage go up and down completely randomly.
Pair Corralation between Elfun Government and Blackrock Advantage
Assuming the 90 days horizon Elfun Government is expected to generate 4.43 times less return on investment than Blackrock Advantage. But when comparing it to its historical volatility, Elfun Government Money is 5.39 times less risky than Blackrock Advantage. It trades about 0.08 of its potential returns per unit of risk. Blackrock Advantage Total is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,662 in Blackrock Advantage Total on September 14, 2024 and sell it today you would earn a total of 476.00 from holding Blackrock Advantage Total or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Elfun Government Money vs. Blackrock Advantage Total
Performance |
| Timeline |
| Elfun Government Money |
| Blackrock Advantage Total |
Elfun Government and Blackrock Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Blackrock Advantage
The main advantage of trading using opposite Elfun Government and Blackrock Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Blackrock Advantage 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 Blackrock Advantage will offset losses from the drop in Blackrock Advantage'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 |
| Blackrock Advantage vs. Ambrus Core Bond | Blackrock Advantage vs. Touchstone Premium Yield | Blackrock Advantage vs. Versatile Bond Portfolio | Blackrock Advantage vs. Doubleline Yield Opportunities |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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