Correlation Between Elfun Government and Us Global
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Us Global 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 Us Global 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 Us Global Investors, you can compare the effects of market volatilities on Elfun Government and Us Global 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 Us Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Us Global.
Diversification Opportunities for Elfun Government and Us Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and USLUX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Us Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Global Investors 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 Us Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Global Investors has no effect on the direction of Elfun Government i.e., Elfun Government and Us Global go up and down completely randomly.
Pair Corralation between Elfun Government and Us Global
Assuming the 90 days horizon Elfun Government Money is expected to generate 26.27 times more return on investment than Us Global. However, Elfun Government is 26.27 times more volatile than Us Global Investors. It trades about 0.05 of its potential returns per unit of risk. Us Global Investors is currently generating about 0.03 per unit of risk. If you would invest 371.00 in Elfun Government Money on October 11, 2024 and sell it today you would lose (271.00) from holding Elfun Government Money or give up 73.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Elfun Government Money vs. Us Global Investors
Performance |
| Timeline |
| Elfun Government Money |
| Us Global Investors |
Elfun Government and Us Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Us Global
The main advantage of trading using opposite Elfun Government and Us Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Us Global 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 Us Global will offset losses from the drop in Us Global's long position.| Elfun Government vs. American Funds Government | Elfun Government vs. Lord Abbett Government | Elfun Government vs. Dws Government Money | Elfun Government vs. Inverse Government Long |
| Us Global vs. Schwab Government Money | Us Global vs. Pioneer Money Market | Us Global vs. Fidelity Government Money | Us Global vs. Elfun Government Money |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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