Correlation Between Elfun Trusts and 11135FBR1

Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and 11135FBR1 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 11135FBR1 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 AVGO 4 15 APR 29, you can compare the effects of market volatilities on Elfun Trusts and 11135FBR1 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 11135FBR1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and 11135FBR1.

Diversification Opportunities for Elfun Trusts and 11135FBR1

-0.62

Correlation Coefficient

Elfun Trusts  11135FBR1

Excellent diversification

The 3 months correlation between Elfun and 11135FBR1 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and AVGO 4 15 APR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVGO 4 15 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 11135FBR1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVGO 4 15 has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and 11135FBR1 go up and down completely randomly.

Pair Corralation between Elfun Trusts and 11135FBR1

Assuming the 90 days horizon Elfun Trusts Elfun is expected to under-perform the 11135FBR1. In addition to that, Elfun Trusts is 1.55 times more volatile than AVGO 4 15 APR 29. It trades about -0.1 of its total potential returns per unit of risk. AVGO 4 15 APR 29 is currently generating about -0.09 per unit of volatility. If you would invest  9,634  in AVGO 4 15 APR 29 on December 30, 2024 and sell it today you would lose (373.00) from holding AVGO 4 15 APR 29 or give up 3.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Elfun Trusts Elfun  vs.  AVGO 4 15 APR 29

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 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.

AVGO 4 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days AVGO 4 15 APR 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 11135FBR1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Elfun Trusts and 11135FBR1

The main advantage of trading using opposite Elfun Trusts and 11135FBR1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, 11135FBR1 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 11135FBR1 will offset losses from the drop in 11135FBR1's long position.

The idea behind Elfun Trusts Elfun and AVGO 4 15 APR 29 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.