Correlation Between Issachar Fund and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Elfun Diversified 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 Issachar Fund and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Elfun Diversified Fund, you can compare the effects of market volatilities on Issachar Fund and Elfun Diversified 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 Issachar Fund with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Elfun Diversified.
Diversification Opportunities for Issachar Fund and Elfun Diversified
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Issachar and Elfun is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Issachar Fund i.e., Issachar Fund and Elfun Diversified go up and down completely randomly.
Pair Corralation between Issachar Fund and Elfun Diversified
Assuming the 90 days horizon Issachar Fund Class is expected to generate 0.9 times more return on investment than Elfun Diversified. However, Issachar Fund Class is 1.11 times less risky than Elfun Diversified. It trades about -0.06 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about -0.26 per unit of risk. If you would invest 1,026 in Issachar Fund Class on October 9, 2024 and sell it today you would lose (19.00) from holding Issachar Fund Class or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Elfun Diversified Fund
Performance |
| Timeline |
| Issachar Fund Class |
| Elfun Diversified |
Issachar Fund and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Elfun Diversified
The main advantage of trading using opposite Issachar Fund and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Elfun Diversified 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 Diversified will offset losses from the drop in Elfun Diversified's long position.| Issachar Fund vs. Pnc Emerging Markets | Issachar Fund vs. Nasdaq 100 2x Strategy | Issachar Fund vs. Oberweis Emerging Growth | Issachar Fund vs. Ashmore Emerging Markets |
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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