Correlation Between Invesco Small and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Invesco Small 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 Invesco Small and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Small Cap and Elfun Government Money, you can compare the effects of market volatilities on Invesco Small 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 Invesco Small with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Small and Elfun Government.
Diversification Opportunities for Invesco Small and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Small Cap 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 Invesco Small 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 Invesco Small Cap 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 Invesco Small i.e., Invesco Small and Elfun Government go up and down completely randomly.
Pair Corralation between Invesco Small and Elfun Government
If you would invest 1,677 in Invesco Small Cap on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Invesco Small Cap or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Invesco Small Cap vs. Elfun Government Money
Performance |
| Timeline |
| Invesco Small Cap |
| Elfun Government Money |
Invesco Small and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Small and Elfun Government
The main advantage of trading using opposite Invesco Small and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Small 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.| Invesco Small vs. Virtus Real Estate | Invesco Small vs. Simt Real Estate | Invesco Small vs. Forum Real Estate | Invesco Small vs. Prudential Real Estate |
| Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard 500 Index | Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard Total Stock |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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