Correlation Between Elfun Trusts and MQGAU

Can any of the company-specific risk be diversified away by investing in both Elfun Trusts and MQGAU 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 MQGAU 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 MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Elfun Trusts and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and MQGAU.

Diversification Opportunities for Elfun Trusts and MQGAU

0.63

Correlation Coefficient

Elfun Trusts  MQGAU

Poor diversification

The 3 months correlation between Elfun and MQGAU is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Elfun Trusts i.e., Elfun Trusts and MQGAU go up and down completely randomly.

Pair Corralation between Elfun Trusts and MQGAU

Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 7.63 times more return on investment than MQGAU. However, Elfun Trusts is 7.63 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.16 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about 0.1 per unit of risk. If you would invest  9,364  in Elfun Trusts Elfun on September 18, 2024 and sell it today you would earn a total of  667.00  from holding Elfun Trusts Elfun or generate 7.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	33.33%
Values	Daily Returns

Elfun Trusts Elfun  vs.  MQGAU 5376057 23 SEP 27

Elfun Trusts Elfun

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Elfun Trusts Elfun are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Elfun Trusts may actually be approaching a critical reversion point that can send shares even higher in January 2025.

MQGAU 5376057 23

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 5376057 23 SEP 27 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Elfun Trusts and MQGAU

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

The idea behind Elfun Trusts Elfun and MQGAU 5376057 23 SEP 27 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.