Correlation Between Elfun Government and Fidelity® Government
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Fidelity® 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 Fidelity® 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 Fidelity Government Money, you can compare the effects of market volatilities on Elfun Government and Fidelity® 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 Fidelity® Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Fidelity® Government.
Diversification Opportunities for Elfun Government and Fidelity® Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Fidelity® is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Fidelity Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Government Money 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 Fidelity® Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Government Money has no effect on the direction of Elfun Government i.e., Elfun Government and Fidelity® Government go up and down completely randomly.
Pair Corralation between Elfun Government and Fidelity® Government
Assuming the 90 days horizon Elfun Government Money is expected to generate 255.14 times more return on investment than Fidelity® Government. However, Elfun Government is 255.14 times more volatile than Fidelity Government Money. It trades about 0.05 of its potential returns per unit of risk. Fidelity Government Money is currently generating about 0.11 per unit of risk. If you would invest 388.00 in Elfun Government Money on October 27, 2024 and sell it today you would lose (288.00) from holding Elfun Government Money or give up 74.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.54% |
| Values | Daily Returns |
Elfun Government Money vs. Fidelity Government Money
Performance |
| Timeline |
| Elfun Government Money |
| Fidelity Government Money |
Elfun Government and Fidelity® Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Fidelity® Government
The main advantage of trading using opposite Elfun Government and Fidelity® Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Fidelity® 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 Fidelity® Government will offset losses from the drop in Fidelity® Government's long position.| Elfun Government vs. Technology Ultrasector Profund | Elfun Government vs. Dreyfus Technology Growth | Elfun Government vs. Allianzgi Technology Fund | Elfun Government vs. Fidelity Advisor Technology |
| Fidelity® Government vs. T Rowe Price | Fidelity® Government vs. Transamerica Intermediate Muni | Fidelity® Government vs. Ab Bond Inflation | Fidelity® Government vs. T Rowe Price |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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