Correlation Between Franklin Government and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Franklin Government and Elfun Government 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 Franklin Government and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Elfun Government Money, you can compare the effects of market volatilities on Franklin Government and Elfun Government 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 Franklin Government with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and Elfun Government.
Diversification Opportunities for Franklin Government and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and Franklin 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 Franklin Government Money are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Franklin Government i.e., Franklin Government and Elfun Government go up and down completely randomly.
Pair Corralation between Franklin Government and Elfun Government
If you would invest 100.00 in Elfun Government Money on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Elfun Government Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Franklin Government Money vs. Elfun Government Money
Performance |
| Timeline |
| Franklin Government Money |
| Elfun Government Money |
Franklin Government and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and Elfun Government
The main advantage of trading using opposite Franklin Government and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| Franklin Government vs. Rbb Fund | Franklin Government vs. Issachar Fund Class | Franklin Government vs. Artisan Thematic Fund | Franklin Government vs. Vanguard Windsor Fund |
| Elfun Government vs. Dreyfus Natural Resources | Elfun Government vs. Gamco Natural Resources | Elfun Government vs. Adams Natural Resources | Elfun Government vs. Gmo Resources |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |