Correlation Between Elfun Government and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Mid Cap 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 Mid Cap 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 Mid Cap Value Profund, you can compare the effects of market volatilities on Elfun Government and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Mid Cap.
Diversification Opportunities for Elfun Government and Mid Cap
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Mid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Mid Cap Value Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Elfun Government i.e., Elfun Government and Mid Cap go up and down completely randomly.
Pair Corralation between Elfun Government and Mid Cap
If you would invest 100.00 in Elfun Government Money on October 15, 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 | 94.74% |
| Values | Daily Returns |
Elfun Government Money vs. Mid Cap Value Profund
Performance |
| Timeline |
| Elfun Government Money |
| Mid Cap Value |
Elfun Government and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Mid Cap
The main advantage of trading using opposite Elfun Government and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Elfun Government vs. Short Precious Metals | Elfun Government vs. The Gold Bullion | Elfun Government vs. Europac Gold Fund | Elfun Government vs. Great West Goldman Sachs |
| Mid Cap vs. Voya Government Money | Mid Cap vs. Ab Government Exchange | Mid Cap vs. Dws Government Money | Mid Cap 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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