Correlation Between Long Term and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Long Term 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 Long Term and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Long Term Government Fund and Elfun Government Money, you can compare the effects of market volatilities on Long Term 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 Long Term with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Term and Elfun Government.
Diversification Opportunities for Long Term and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Long and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Long Term Government Fund 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 Long Term 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 Long Term Government Fund 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 Long Term i.e., Long Term and Elfun Government go up and down completely randomly.
Pair Corralation between Long Term and Elfun Government
Assuming the 90 days horizon Long Term Government Fund is expected to under-perform the Elfun Government. In addition to that, Long Term is 3.89 times more volatile than Elfun Government Money. It trades about -0.01 of its total potential returns per unit of risk. Elfun Government Money is currently generating about 0.07 per unit of volatility. If you would invest 97.00 in Elfun Government Money on October 22, 2024 and sell it today you would earn a total of 3.00 from holding Elfun Government Money or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.42% |
| Values | Daily Returns |
Long Term Government Fund vs. Elfun Government Money
Performance |
| Timeline |
| Long Term Government |
| Elfun Government Money |
Long Term and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Term and Elfun Government
The main advantage of trading using opposite Long Term and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Term 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.| Long Term vs. Intermediate Government Bond | Long Term vs. Schwab Government Money | Long Term vs. Short Term Government Fund | Long Term vs. Payden Government Fund |
| Elfun Government vs. John Hancock Money | Elfun Government vs. Bbh Trust | Elfun Government vs. Schwab Government Money | Elfun Government vs. Jpmorgan Trust Iv |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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