Correlation Between Elfun Government and Scout Small
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Scout Small 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 Scout Small 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 Scout Small Cap, you can compare the effects of market volatilities on Elfun Government and Scout Small 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 Scout Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Scout Small.
Diversification Opportunities for Elfun Government and Scout Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Scout is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Scout Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Small Cap 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 Scout Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Small Cap has no effect on the direction of Elfun Government i.e., Elfun Government and Scout Small go up and down completely randomly.
Pair Corralation between Elfun Government and Scout Small
If you would invest 3,156 in Scout Small Cap on September 25, 2024 and sell it today you would earn a total of 109.00 from holding Scout Small Cap or generate 3.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Elfun Government Money vs. Scout Small Cap
Performance |
Timeline |
Elfun Government Money |
Scout Small Cap |
Elfun Government and Scout Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elfun Government and Scout Small
The main advantage of trading using opposite Elfun Government and Scout Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Scout Small 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 Scout Small will offset losses from the drop in Scout Small's long position.Elfun Government vs. Mid Cap 15x Strategy | Elfun Government vs. Ashmore Emerging Markets | Elfun Government vs. Eagle Mlp Strategy | Elfun Government vs. Investec Emerging Markets |
Scout Small vs. Elfun Government Money | Scout Small vs. Inverse Government Long | Scout Small vs. Dws Government Money | Scout Small vs. Goldman Sachs Government |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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