Correlation Between Fidelity® Government and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Fidelity® 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 Fidelity® 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 Fidelity Government Money and Elfun Government Money, you can compare the effects of market volatilities on Fidelity® 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 Fidelity® Government with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity® Government and Elfun Government.
Diversification Opportunities for Fidelity® Government and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity® and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity 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 Fidelity® 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 Fidelity 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 Fidelity® Government i.e., Fidelity® Government and Elfun Government go up and down completely randomly.
Pair Corralation between Fidelity® Government and Elfun Government
If you would invest 100.00 in Elfun Government Money on October 12, 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 | 100.0% |
| Values | Daily Returns |
Fidelity Government Money vs. Elfun Government Money
Performance |
| Timeline |
| Fidelity Government Money |
| Elfun Government Money |
Fidelity® Government and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity® Government and Elfun Government
The main advantage of trading using opposite Fidelity® Government and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity® 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.The idea behind Fidelity Government Money and Elfun Government Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Elfun Government vs. Lord Abbett Short | Elfun Government vs. Americafirst Monthly Risk On | Elfun Government vs. Needham Aggressive Growth | Elfun Government vs. Ab High Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |