Correlation Between Elfun Government and Ecofin Sustainable
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Ecofin Sustainable 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 Ecofin Sustainable 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 Ecofin Sustainable And, you can compare the effects of market volatilities on Elfun Government and Ecofin Sustainable 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 Ecofin Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Ecofin Sustainable.
Diversification Opportunities for Elfun Government and Ecofin Sustainable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Ecofin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Ecofin Sustainable And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofin Sustainable And 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 Ecofin Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofin Sustainable And has no effect on the direction of Elfun Government i.e., Elfun Government and Ecofin Sustainable go up and down completely randomly.
Pair Corralation between Elfun Government and Ecofin Sustainable
Assuming the 90 days horizon Elfun Government Money is expected to generate 0.49 times more return on investment than Ecofin Sustainable. However, Elfun Government Money is 2.05 times less risky than Ecofin Sustainable. It trades about 0.04 of its potential returns per unit of risk. Ecofin Sustainable And is currently generating about 0.02 per unit of risk. If you would invest 99.00 in Elfun Government Money on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Elfun Government Money or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.9% |
| Values | Daily Returns |
Elfun Government Money vs. Ecofin Sustainable And
Performance |
| Timeline |
| Elfun Government Money |
| Ecofin Sustainable And |
Elfun Government and Ecofin Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Ecofin Sustainable
The main advantage of trading using opposite Elfun Government and Ecofin Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Ecofin Sustainable 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 Ecofin Sustainable will offset losses from the drop in Ecofin Sustainable'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 |
| Ecofin Sustainable vs. College Retirement Equities | Ecofin Sustainable vs. Sa Worldwide Moderate | Ecofin Sustainable vs. Sierra E Retirement | Ecofin Sustainable vs. Calvert Moderate Allocation |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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