Correlation Between Elfun Trusts and Grandeur Peak

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

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

Diversification Opportunities for Elfun Trusts and Grandeur Peak

0.69

Correlation Coefficient

Elfun Trusts  Grandeur Peak

Poor diversification

The 3 months correlation between Elfun and Grandeur is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Grandeur Peak Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandeur Peak Global and Elfun Trusts 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 Trusts Elfun are associated (or correlated) with Grandeur Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandeur Peak Global has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Grandeur Peak go up and down completely randomly.

Pair Corralation between Elfun Trusts and Grandeur Peak

Assuming the 90 days horizon Elfun Trusts Elfun is expected to under-perform the Grandeur Peak. In addition to that, Elfun Trusts is 1.64 times more volatile than Grandeur Peak Global. It trades about -0.15 of its total potential returns per unit of risk. Grandeur Peak Global is currently generating about -0.05 per unit of volatility. If you would invest  332.00  in Grandeur Peak Global on December 23, 2024 and sell it today you would lose (11.00) from holding Grandeur Peak Global or give up 3.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Elfun Trusts Elfun  vs.  Grandeur Peak Global

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 weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Grandeur Peak Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grandeur Peak Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Grandeur Peak 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 Trusts and Grandeur Peak

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

The idea behind Elfun Trusts Elfun and Grandeur Peak Global 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.