Correlation Between Elfun Government and Northern Funds
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Northern Funds 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 Northern Funds 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 Northern Funds , you can compare the effects of market volatilities on Elfun Government and Northern Funds 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 Northern Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Northern Funds.
Diversification Opportunities for Elfun Government and Northern Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Northern Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Funds 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 Northern Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Funds has no effect on the direction of Elfun Government i.e., Elfun Government and Northern Funds go up and down completely randomly.
Pair Corralation between Elfun Government and Northern Funds
If you would invest 100.00 in Northern Funds on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Northern Funds 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. Northern Funds
Performance |
| Timeline |
| Elfun Government Money |
| Northern Funds |
Elfun Government and Northern Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Northern Funds
The main advantage of trading using opposite Elfun Government and Northern Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Northern Funds 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 Northern Funds will offset losses from the drop in Northern Funds' 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 |
| Northern Funds vs. Aig Government Money | Northern Funds vs. Dunham Porategovernment Bond | Northern Funds vs. Short Term Government Fund | Northern Funds 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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