Correlation Between Ab Global and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Ab Global and Elfun Diversified 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 Ab Global and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Elfun Diversified Fund, you can compare the effects of market volatilities on Ab Global and Elfun Diversified 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 Ab Global with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Elfun Diversified.
Diversification Opportunities for Ab Global and Elfun Diversified
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CABIX and Elfun is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Ab Global 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 Ab Global Risk are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Ab Global i.e., Ab Global and Elfun Diversified go up and down completely randomly.
Pair Corralation between Ab Global and Elfun Diversified
Assuming the 90 days horizon Ab Global Risk is expected to generate 0.93 times more return on investment than Elfun Diversified. However, Ab Global Risk is 1.07 times less risky than Elfun Diversified. It trades about 0.15 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.14 per unit of risk. If you would invest 1,655 in Ab Global Risk on September 4, 2025 and sell it today you would earn a total of 70.00 from holding Ab Global Risk or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Elfun Diversified Fund
Performance |
| Timeline |
| Ab Global Risk |
| Elfun Diversified |
Ab Global and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Elfun Diversified
The main advantage of trading using opposite Ab Global and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Elfun Diversified 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 Diversified will offset losses from the drop in Elfun Diversified's long position.| Ab Global vs. Delaware Investments Ultrashort | Ab Global vs. Blackrock Global Longshort | Ab Global vs. Short Intermediate Bond Fund | Ab Global vs. Aqr Sustainable Long Short |
| Elfun Diversified vs. Ab Global Risk | Elfun Diversified vs. Federated Global Allocation | Elfun Diversified vs. Doubleline Global Bond | Elfun Diversified vs. Ab Global Risk |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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