Correlation Between Elfun Government and Stock Index
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Stock Index 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 Stock Index 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 Stock Index Fund, you can compare the effects of market volatilities on Elfun Government and Stock Index 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 Stock Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Stock Index.
Diversification Opportunities for Elfun Government and Stock Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Stock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Stock Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Index Fund 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 Stock Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Index Fund has no effect on the direction of Elfun Government i.e., Elfun Government and Stock Index go up and down completely randomly.
Pair Corralation between Elfun Government and Stock Index
If you would invest 6,062 in Stock Index Fund on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Stock Index Fund or generate 1.5% 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. Stock Index Fund
Performance |
| Timeline |
| Elfun Government Money |
| Stock Index Fund |
Elfun Government and Stock Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Stock Index
The main advantage of trading using opposite Elfun Government and Stock Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Stock Index 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 Stock Index will offset losses from the drop in Stock Index'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 |
| Stock Index vs. Ab Government Exchange | Stock Index vs. Cref Money Market | Stock Index vs. Money Market Obligations | Stock Index 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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