Correlation Between Elfun Government and Rbc Funds
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Rbc Funds 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 Rbc Funds 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 Rbc Funds Trust, you can compare the effects of market volatilities on Elfun Government and Rbc Funds 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 Rbc Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Rbc Funds.
Diversification Opportunities for Elfun Government and Rbc Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Rbc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Rbc Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Funds Trust 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 Rbc Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Funds Trust has no effect on the direction of Elfun Government i.e., Elfun Government and Rbc Funds go up and down completely randomly.
Pair Corralation between Elfun Government and Rbc Funds
Assuming the 90 days horizon Elfun Government Money is expected to generate 105.23 times more return on investment than Rbc Funds. However, Elfun Government is 105.23 times more volatile than Rbc Funds Trust. It trades about 0.05 of its potential returns per unit of risk. Rbc Funds Trust is currently generating about 0.06 per unit of risk. If you would invest 96.00 in Elfun Government Money on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Elfun Government Money or generate 4.17% 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. Rbc Funds Trust
Performance |
| Timeline |
| Elfun Government Money |
| Rbc Funds Trust |
Elfun Government and Rbc Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Rbc Funds
The main advantage of trading using opposite Elfun Government and Rbc Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Rbc Funds 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 Rbc Funds will offset losses from the drop in Rbc Funds' 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 |
| Rbc Funds vs. Commodities Strategy Fund | Rbc Funds vs. Barings Emerging Markets | Rbc Funds vs. Templeton Emerging Markets | Rbc Funds vs. Dodge Cox Emerging |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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