Correlation Between Elfun Trusts and Ardagh
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By analyzing existing cross correlation between Elfun Trusts Elfun and Ardagh Packaging Finance, you can compare the effects of market volatilities on Elfun Trusts and Ardagh 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 Ardagh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Ardagh.
Diversification Opportunities for Elfun Trusts and Ardagh
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elfun and Ardagh is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and Ardagh Packaging Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Packaging Finance 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 Ardagh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Packaging Finance has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and Ardagh go up and down completely randomly.
Pair Corralation between Elfun Trusts and Ardagh
Assuming the 90 days horizon Elfun Trusts Elfun is expected to under-perform the Ardagh. But the mutual fund apears to be less risky and, when comparing its historical volatility, Elfun Trusts Elfun is 5.69 times less risky than Ardagh. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Ardagh Packaging Finance is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,900 in Ardagh Packaging Finance on December 4, 2024 and sell it today you would earn a total of 1,125 from holding Ardagh Packaging Finance or generate 19.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 41.67% |
Values | Daily Returns |
Elfun Trusts Elfun vs. Ardagh Packaging Finance
Performance |
Timeline |
Elfun Trusts Elfun |
Ardagh Packaging Finance |
Elfun Trusts and Ardagh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elfun Trusts and Ardagh
The main advantage of trading using opposite Elfun Trusts and Ardagh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, Ardagh 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 Ardagh will offset losses from the drop in Ardagh's long position.Elfun Trusts vs. Versatile Bond Portfolio | Elfun Trusts vs. Ft 7934 Corporate | Elfun Trusts vs. Credit Suisse Multialternative | Elfun Trusts vs. Rbc Emerging Markets |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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