Correlation Between Elfun Government and Us Government
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Us Government 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 Us Government 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 Us Government Securities, you can compare the effects of market volatilities on Elfun Government and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Us Government.
Diversification Opportunities for Elfun Government and Us Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and RGVEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Elfun Government i.e., Elfun Government and Us Government go up and down completely randomly.
Pair Corralation between Elfun Government and Us Government
Assuming the 90 days horizon Elfun Government Money is expected to generate 69.33 times more return on investment than Us Government. However, Elfun Government is 69.33 times more volatile than Us Government Securities. It trades about 0.06 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.02 per unit of risk. If you would invest 366.00 in Elfun Government Money on September 14, 2024 and sell it today you would lose (266.00) from holding Elfun Government Money or give up 72.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.82% |
| Values | Daily Returns |
Elfun Government Money vs. Us Government Securities
Performance |
| Timeline |
| Elfun Government Money |
| Us Government Securities |
Elfun Government and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Us Government
The main advantage of trading using opposite Elfun Government and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government'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 |
| Us Government vs. Cardinal Small Cap | Us Government vs. Scout Small Cap | Us Government vs. Df Dent Small | Us Government vs. Lebenthal Lisanti Small |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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