Correlation Between Elfun Government and Touchstone Premium
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Touchstone Premium 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 Touchstone Premium 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 Touchstone Premium Yield, you can compare the effects of market volatilities on Elfun Government and Touchstone Premium 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 Touchstone Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Touchstone Premium.
Diversification Opportunities for Elfun Government and Touchstone Premium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Touchstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Touchstone Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Premium 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 Touchstone Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Premium Yield has no effect on the direction of Elfun Government i.e., Elfun Government and Touchstone Premium go up and down completely randomly.
Pair Corralation between Elfun Government and Touchstone Premium
If you would invest 870.00 in Touchstone Premium Yield on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Touchstone Premium Yield or generate 2.76% 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. Touchstone Premium Yield
Performance |
| Timeline |
| Elfun Government Money |
| Touchstone Premium Yield |
Elfun Government and Touchstone Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Touchstone Premium
The main advantage of trading using opposite Elfun Government and Touchstone Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Touchstone Premium 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 Touchstone Premium will offset losses from the drop in Touchstone Premium's long position.| Elfun Government vs. Dreyfus Natural Resources | Elfun Government vs. Gamco Natural Resources | Elfun Government vs. Adams Natural Resources | Elfun Government vs. Gmo Resources |
| Touchstone Premium vs. Touchstone Small Cap | Touchstone Premium vs. Touchstone Sands Capital | Touchstone Premium vs. Mid Cap Growth | Touchstone Premium vs. Mid Cap Growth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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