Correlation Between Elfun Government and Tiaa-cref High-yield
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Tiaa-cref High-yield 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 Tiaa-cref High-yield 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 Tiaa Cref High Yield Fund, you can compare the effects of market volatilities on Elfun Government and Tiaa-cref High-yield 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 Tiaa-cref High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Tiaa-cref High-yield.
Diversification Opportunities for Elfun Government and Tiaa-cref High-yield
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Tiaa-cref is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Tiaa Cref High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref High-yield 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 Tiaa-cref High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref High-yield has no effect on the direction of Elfun Government i.e., Elfun Government and Tiaa-cref High-yield go up and down completely randomly.
Pair Corralation between Elfun Government and Tiaa-cref High-yield
If you would invest 877.00 in Tiaa Cref High Yield Fund on October 29, 2024 and sell it today you would earn a total of 13.00 from holding Tiaa Cref High Yield Fund or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Elfun Government Money vs. Tiaa Cref High Yield Fund
Performance |
| Timeline |
| Elfun Government Money |
| Tiaa-cref High-yield |
Elfun Government and Tiaa-cref High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Tiaa-cref High-yield
The main advantage of trading using opposite Elfun Government and Tiaa-cref High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Tiaa-cref High-yield 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 Tiaa-cref High-yield will offset losses from the drop in Tiaa-cref High-yield'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 |
| Tiaa-cref High-yield vs. World Energy Fund | Tiaa-cref High-yield vs. Virtus Select Mlp | Tiaa-cref High-yield vs. Alpsalerian Energy Infrastructure | Tiaa-cref High-yield vs. Invesco Energy Fund |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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