Correlation Between Tiaa-cref Inflation-linked and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Inflation Linked Bond and Elfun Diversified Fund, you can compare the effects of market volatilities on Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Inflation-linked and Elfun Diversified.
Diversification Opportunities for Tiaa-cref Inflation-linked and Elfun Diversified
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tiaa-cref and Elfun is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Inflation Linked Bon and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Tiaa-cref Inflation-linked 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 Tiaa Cref Inflation Linked Bond 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 Tiaa-cref Inflation-linked i.e., Tiaa-cref Inflation-linked and Elfun Diversified go up and down completely randomly.
Pair Corralation between Tiaa-cref Inflation-linked and Elfun Diversified
Assuming the 90 days horizon Tiaa-cref Inflation-linked is expected to generate 3.25 times less return on investment than Elfun Diversified. But when comparing it to its historical volatility, Tiaa Cref Inflation Linked Bond is 3.13 times less risky than Elfun Diversified. It trades about 0.01 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,065 in Elfun Diversified Fund on November 2, 2024 and sell it today you would earn a total of 10.00 from holding Elfun Diversified Fund or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Inflation Linked Bon vs. Elfun Diversified Fund
Performance |
| Timeline |
| Tiaa-cref Inflation-linked |
| Elfun Diversified |
Tiaa-cref Inflation-linked and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Inflation-linked and Elfun Diversified
The main advantage of trading using opposite Tiaa-cref Inflation-linked and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Inflation-linked 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.| Tiaa-cref Inflation-linked vs. The Hartford Growth | Tiaa-cref Inflation-linked vs. Vy Baron Growth | Tiaa-cref Inflation-linked vs. Small Pany Growth | Tiaa-cref Inflation-linked vs. Tfa Alphagen Growth |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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