Correlation Between Ssga International and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Ssga International 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 Ssga International and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Elfun Diversified Fund, you can compare the effects of market volatilities on Ssga International 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 Ssga International with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Elfun Diversified.
Diversification Opportunities for Ssga International and Elfun Diversified
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ssga and Elfun is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Ssga International 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 Ssga International Stock 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 Ssga International i.e., Ssga International and Elfun Diversified go up and down completely randomly.
Pair Corralation between Ssga International and Elfun Diversified
Assuming the 90 days horizon Ssga International Stock is expected to generate 1.47 times more return on investment than Elfun Diversified. However, Ssga International is 1.47 times more volatile than Elfun Diversified Fund. It trades about 0.3 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 1,085 in Ssga International Stock on November 2, 2024 and sell it today you would earn a total of 49.00 from holding Ssga International Stock or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Elfun Diversified Fund
Performance |
| Timeline |
| Ssga International Stock |
| Elfun Diversified |
Ssga International and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Elfun Diversified
The main advantage of trading using opposite Ssga International and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International 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.| Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Large Cap Growth | Ssga International vs. Schwab Dividend Equity |
| Elfun Diversified vs. Madison Diversified Income | Elfun Diversified vs. Vy T Rowe | Elfun Diversified vs. Aqr Diversified Arbitrage | Elfun Diversified vs. Oklahoma College Savings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |