Correlation Between Wilmington Funds and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Wilmington Funds 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 Wilmington Funds and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Funds and Elfun Government Money, you can compare the effects of market volatilities on Wilmington Funds 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 Wilmington Funds with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Funds and Elfun Government.
Diversification Opportunities for Wilmington Funds and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wilmington and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Funds 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 Wilmington Funds 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 Wilmington Funds 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 Wilmington Funds i.e., Wilmington Funds and Elfun Government go up and down completely randomly.
Pair Corralation between Wilmington Funds and Elfun Government
Assuming the 90 days horizon Wilmington Funds is expected to generate 0.51 times more return on investment than Elfun Government. However, Wilmington Funds is 1.97 times less risky than Elfun Government. It trades about 0.12 of its potential returns per unit of risk. Elfun Government Money is currently generating about 0.06 per unit of risk. If you would invest 98.00 in Wilmington Funds on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Wilmington Funds or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.69% |
| Values | Daily Returns |
Wilmington Funds vs. Elfun Government Money
Performance |
| Timeline |
| Wilmington Funds |
| Elfun Government Money |
Wilmington Funds and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Funds and Elfun Government
The main advantage of trading using opposite Wilmington Funds and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Funds 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.| Wilmington Funds vs. Vanguard Total Stock | Wilmington Funds vs. Vanguard 500 Index | Wilmington Funds vs. Vanguard Total Stock | Wilmington Funds vs. Vanguard Total Stock |
| Elfun Government vs. Touchstone Premium Yield | Elfun Government vs. Limited Term Tax | Elfun Government vs. Bbh Intermediate Municipal | Elfun Government vs. Versatile Bond Portfolio |
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
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |