Correlation Between Elfun Diversified and Hartford Total
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Hartford Total 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 Diversified and Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Hartford Total Return, you can compare the effects of market volatilities on Elfun Diversified and Hartford Total 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 Diversified with a short position of Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Hartford Total.
Diversification Opportunities for Elfun Diversified and Hartford Total
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ELFUN and Hartford is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Hartford Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return and Elfun Diversified 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 Diversified Fund are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Hartford Total go up and down completely randomly.
Pair Corralation between Elfun Diversified and Hartford Total
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 2.09 times more return on investment than Hartford Total. However, Elfun Diversified is 2.09 times more volatile than Hartford Total Return. It trades about -0.02 of its potential returns per unit of risk. Hartford Total Return is currently generating about -0.05 per unit of risk. If you would invest 2,076 in Elfun Diversified Fund on December 10, 2024 and sell it today you would lose (36.00) from holding Elfun Diversified Fund or give up 1.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Elfun Diversified Fund vs. Hartford Total Return
Performance |
Timeline |
Elfun Diversified |
Hartford Total Return |
Elfun Diversified and Hartford Total Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elfun Diversified and Hartford Total
The main advantage of trading using opposite Elfun Diversified and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Hartford Total 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 Hartford Total will offset losses from the drop in Hartford Total's long position.Elfun Diversified vs. T Rowe Price | Elfun Diversified vs. Rbc Funds Trust | Elfun Diversified vs. Jpmorgan Trust I | Elfun Diversified vs. Franklin Government Money |
Hartford Total vs. Washington Mutual Investors | Hartford Total vs. Morgan Stanley Institutional | Hartford Total vs. Enhanced Large Pany | Hartford Total vs. Upright Assets Allocation |
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.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |