Correlation Between Elfun Trusts and BARRICK

Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and BARRICK 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 BARRICK 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 BARRICK PD AUSTRALIA, you can compare the effects of market volatilities on Elfun Trusts and BARRICK 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 BARRICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and BARRICK.

Diversification Opportunities for Elfun Trusts and BARRICK

0.21

Correlation Coefficient

Elfun Trusts  BARRICK

Modest diversification

The 3 months correlation between Elfun and BARRICK is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and BARRICK PD AUSTRALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK PD AUSTRALIA 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 BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK PD AUSTRALIA has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and BARRICK go up and down completely randomly.

Pair Corralation between Elfun Trusts and BARRICK

Assuming the 90 days horizon Elfun Trusts Elfun is expected to under-perform the BARRICK. In addition to that, Elfun Trusts is 2.86 times more volatile than BARRICK PD AUSTRALIA. It trades about -0.1 of its total potential returns per unit of risk. BARRICK PD AUSTRALIA is currently generating about -0.07 per unit of volatility. If you would invest  10,361  in BARRICK PD AUSTRALIA on October 20, 2024 and sell it today you would lose (164.00) from holding BARRICK PD AUSTRALIA or give up 1.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.0%
Values	Daily Returns

Elfun Trusts Elfun  vs.  BARRICK PD AUSTRALIA

Elfun Trusts Elfun

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

BARRICK PD AUSTRALIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BARRICK PD AUSTRALIA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BARRICK is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Elfun Trusts and BARRICK

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

The idea behind Elfun Trusts Elfun and BARRICK PD AUSTRALIA 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.