Correlation Between Elfun Government and Sit Government
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Sit 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 Sit 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 Sit Government Securities, you can compare the effects of market volatilities on Elfun Government and Sit 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 Sit Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Sit Government.
Diversification Opportunities for Elfun Government and Sit Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Sit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Sit Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit 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 Sit Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Government Securities has no effect on the direction of Elfun Government i.e., Elfun Government and Sit Government go up and down completely randomly.
Pair Corralation between Elfun Government and Sit Government
If you would invest 1,019 in Sit Government Securities on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Sit Government Securities or generate 0.59% 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. Sit Government Securities
Performance |
| Timeline |
| Elfun Government Money |
| Sit Government Securities |
Elfun Government and Sit Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Sit Government
The main advantage of trading using opposite Elfun Government and Sit Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Sit 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 Sit Government will offset losses from the drop in Sit 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 |
| Sit Government vs. T Rowe Price | Sit Government vs. T Rowe Price | Sit Government vs. Pace High Yield | Sit Government vs. Blrc Sgy Mnp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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