Correlation Between Amg Southernsun and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Amg Southernsun 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 Amg Southernsun and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Southernsun Equity and Elfun Diversified Fund, you can compare the effects of market volatilities on Amg Southernsun 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 Amg Southernsun with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Southernsun and Elfun Diversified.
Diversification Opportunities for Amg Southernsun and Elfun Diversified
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Elfun is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Amg Southernsun Equity and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Amg Southernsun 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 Amg Southernsun Equity 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 Amg Southernsun i.e., Amg Southernsun and Elfun Diversified go up and down completely randomly.
Pair Corralation between Amg Southernsun and Elfun Diversified
Assuming the 90 days horizon Amg Southernsun is expected to generate 24.0 times less return on investment than Elfun Diversified. In addition to that, Amg Southernsun is 2.5 times more volatile than Elfun Diversified Fund. It trades about 0.0 of its total potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.23 per unit of volatility. If you would invest 2,174 in Elfun Diversified Fund on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Elfun Diversified Fund or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Southernsun Equity vs. Elfun Diversified Fund
Performance |
| Timeline |
| Amg Southernsun Equity |
| Elfun Diversified |
Amg Southernsun and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Southernsun and Elfun Diversified
The main advantage of trading using opposite Amg Southernsun and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Southernsun 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.| Amg Southernsun vs. Transamerica Cleartrack Retirement | Amg Southernsun vs. Franklin Lifesmart Retirement | Amg Southernsun vs. Calvert Moderate Allocation | Amg Southernsun vs. Strategic Allocation Moderate |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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