Correlation Between Wcm Focused and Elfun Government

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Can any of the company-specific risk be diversified away by investing in both Wcm Focused and Elfun Government 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 Wcm Focused and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wcm Focused Emerging and Elfun Government Money, you can compare the effects of market volatilities on Wcm Focused and Elfun Government 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 Wcm Focused with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wcm Focused and Elfun Government.

Diversification Opportunities for Wcm Focused and Elfun Government

WcmElfunDiversified AwayWcmElfunDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Wcm and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wcm Focused Emerging and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and Wcm Focused 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 Wcm Focused Emerging are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Wcm Focused i.e., Wcm Focused and Elfun Government go up and down completely randomly.

Pair Corralation between Wcm Focused and Elfun Government

If you would invest  1,498  in Wcm Focused Emerging on October 27, 2024 and sell it today you would earn a total of  8.00  from holding Wcm Focused Emerging or generate 0.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Wcm Focused Emerging  vs.  Elfun Government Money

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5-4-3-2-1012
JavaScript chart by amCharts 3.21.15WFEMX ELMXX
       Timeline  
Wcm Focused Emerging 

Risk-Adjusted Performance

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Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Wcm Focused Emerging are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Wcm Focused is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan14.214.414.614.81515.2
Elfun Government Money 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Elfun Government Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Elfun Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan11.05

Wcm Focused and Elfun Government Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.65-1.99-1.32-0.650.00.651.332.02.673.35 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15WFEMX ELMXX
       Returns  

Pair Trading with Wcm Focused and Elfun Government

The main advantage of trading using opposite Wcm Focused and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wcm Focused position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.
The idea behind Wcm Focused Emerging and Elfun Government Money 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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