Correlation Between Elfun Government and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Growth Fund 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 Growth Fund 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 Growth Fund Growth, you can compare the effects of market volatilities on Elfun Government and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Growth Fund.
Diversification Opportunities for Elfun Government and Growth Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Growth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Growth Fund Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund Growth 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund Growth has no effect on the direction of Elfun Government i.e., Elfun Government and Growth Fund go up and down completely randomly.
Pair Corralation between Elfun Government and Growth Fund
If you would invest 1,786 in Growth Fund Growth on October 24, 2024 and sell it today you would earn a total of 8.00 from holding Growth Fund Growth or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Elfun Government Money vs. Growth Fund Growth
Performance |
| Timeline |
| Elfun Government Money |
| Growth Fund Growth |
Elfun Government and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Growth Fund
The main advantage of trading using opposite Elfun Government and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Elfun Government vs. Blackstone Secured Lending | Elfun Government vs. Angel Oak Financial | Elfun Government vs. Gabelli Global Financial | Elfun Government vs. John Hancock Financial |
| Growth Fund vs. Bbh Intermediate Municipal | Growth Fund vs. Artisan High Income | Growth Fund vs. Rbc Ultra Short Fixed | Growth Fund vs. Siit High Yield |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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