Correlation Between Elfun Trusts and 15089QAL8

Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and 15089QAL8 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 15089QAL8 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 CE 605 15 MAR 25, you can compare the effects of market volatilities on Elfun Trusts and 15089QAL8 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 15089QAL8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and 15089QAL8.

Diversification Opportunities for Elfun Trusts and 15089QAL8

-0.14

Correlation Coefficient

Elfun Trusts  15089QAL8

Good diversification

The 3 months correlation between Elfun and 15089QAL8 is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and CE 605 15 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CE 605 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 15089QAL8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CE 605 15 has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and 15089QAL8 go up and down completely randomly.

Pair Corralation between Elfun Trusts and 15089QAL8

Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 2.56 times more return on investment than 15089QAL8. However, Elfun Trusts is 2.56 times more volatile than CE 605 15 MAR 25. It trades about 0.0 of its potential returns per unit of risk. CE 605 15 MAR 25 is currently generating about 0.01 per unit of risk. If you would invest  8,584  in Elfun Trusts Elfun on December 5, 2024 and sell it today you would lose (34.00) from holding Elfun Trusts Elfun or give up 0.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

Elfun Trusts Elfun  vs.  CE 605 15 MAR 25

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.

CE 605 15

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CE 605 15 MAR 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 15089QAL8 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 15089QAL8

The main advantage of trading using opposite Elfun Trusts and 15089QAL8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts position performs unexpectedly, 15089QAL8 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 15089QAL8 will offset losses from the drop in 15089QAL8's long position.

The idea behind Elfun Trusts Elfun and CE 605 15 MAR 25 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.