Correlation Between Elfun Government and Pimco Total
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Pimco Total 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 Pimco Total 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 Pimco Total Return, you can compare the effects of market volatilities on Elfun Government and Pimco Total 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 Pimco Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Pimco Total.
Diversification Opportunities for Elfun Government and Pimco Total
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Pimco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Pimco Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Total Return 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 Pimco Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Total Return has no effect on the direction of Elfun Government i.e., Elfun Government and Pimco Total go up and down completely randomly.
Pair Corralation between Elfun Government and Pimco Total
If you would invest 755.00 in Pimco Total Return on November 4, 2024 and sell it today you would earn a total of 5.00 from holding Pimco Total Return or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Elfun Government Money vs. Pimco Total Return
Performance |
| Timeline |
| Elfun Government Money |
| Pimco Total Return |
Elfun Government and Pimco Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Pimco Total
The main advantage of trading using opposite Elfun Government and Pimco Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Pimco Total 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 Pimco Total will offset losses from the drop in Pimco Total's long position.| Elfun Government vs. Ab Small Cap | Elfun Government vs. Fpa Queens Road | Elfun Government vs. Fidelity Small Cap | Elfun Government vs. Amg River Road |
| Pimco Total vs. Ab High Income | Pimco Total vs. Artisan High Income | Pimco Total vs. The Hartford High | Pimco Total vs. Ironclad Managed Risk |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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