Correlation Between Elfun Government and Blue Chip
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Blue Chip 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 Government and Blue Chip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Blue Chip Fund, you can compare the effects of market volatilities on Elfun Government and Blue Chip 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 Government with a short position of Blue Chip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Blue Chip.
Diversification Opportunities for Elfun Government and Blue Chip
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Blue Chip Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Chip Fund and Elfun Government 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 Government Money are associated (or correlated) with Blue Chip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Chip Fund has no effect on the direction of Elfun Government i.e., Elfun Government and Blue Chip go up and down completely randomly.
Pair Corralation between Elfun Government and Blue Chip
If you would invest 395.00 in Elfun Government Money on December 2, 2024 and sell it today you would lose (295.00) from holding Elfun Government Money or give up 74.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Elfun Government Money vs. Blue Chip Fund
Performance |
Timeline |
Elfun Government Money |
Blue Chip Fund |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Elfun Government and Blue Chip Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elfun Government and Blue Chip
The main advantage of trading using opposite Elfun Government and Blue Chip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Blue Chip 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 Blue Chip will offset losses from the drop in Blue Chip's long position.Elfun Government vs. Franklin Moderate Allocation | Elfun Government vs. Blackrock Retirement Income | Elfun Government vs. American Funds Retirement | Elfun Government vs. College Retirement Equities |
Blue Chip vs. Buffalo High Yield | Blue Chip vs. Msift High Yield | Blue Chip vs. Virtus High Yield | Blue Chip vs. Prudential High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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