Correlation Between Elfun Income and Elfun Trusts

Can any of the company-specific risk be diversified away by investing in both Elfun Income and Elfun Trusts 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 Elfun Income and Elfun Trusts into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elfun Income Fund and Elfun Trusts Elfun, you can compare the effects of market volatilities on Elfun Income and Elfun Trusts 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 Elfun Income with a short position of Elfun Trusts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Income and Elfun Trusts.

Diversification Opportunities for Elfun Income and Elfun Trusts

0.0

Correlation Coefficient

Elfun Income  Elfun Trusts

Pay attention - limited upside

The 3 months correlation between Elfun and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Income Fund and Elfun Trusts Elfun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Trusts Elfun and Elfun Income 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 Elfun Income Fund are associated (or correlated) with Elfun Trusts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Trusts Elfun has no effect on the direction of Elfun Income i.e., Elfun Income and Elfun Trusts go up and down completely randomly.

Pair Corralation between Elfun Income and Elfun Trusts

If you would invest (100.00) in Elfun Income Fund on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Elfun Income Fund or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Elfun Income Fund  vs.  Elfun Trusts Elfun

Elfun Income

Risk-Adjusted Performance

OK

Over the last 90 days Elfun Income Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Elfun Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Elfun Trusts Elfun

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elfun Trusts Elfun has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Elfun Trusts is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Elfun Income and Elfun Trusts

The main advantage of trading using opposite Elfun Income and Elfun Trusts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Income position performs unexpectedly, Elfun Trusts 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 Trusts will offset losses from the drop in Elfun Trusts' long position.

The idea behind Elfun Income Fund and Elfun Trusts Elfun 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.