Correlation Between Elfun Diversified and Pgim Conservative
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Pgim Conservative 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 Diversified and Pgim Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Pgim Conservative Retirement, you can compare the effects of market volatilities on Elfun Diversified and Pgim Conservative 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 Diversified with a short position of Pgim Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Pgim Conservative.
Diversification Opportunities for Elfun Diversified and Pgim Conservative
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elfun and Pgim is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Pgim Conservative Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Conservative and Elfun Diversified 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 Diversified Fund are associated (or correlated) with Pgim Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Conservative has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Pgim Conservative go up and down completely randomly.
Pair Corralation between Elfun Diversified and Pgim Conservative
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 1.9 times more return on investment than Pgim Conservative. However, Elfun Diversified is 1.9 times more volatile than Pgim Conservative Retirement. It trades about 0.14 of its potential returns per unit of risk. Pgim Conservative Retirement is currently generating about 0.19 per unit of risk. If you would invest 2,244 in Elfun Diversified Fund on September 3, 2025 and sell it today you would earn a total of 99.00 from holding Elfun Diversified Fund or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Pgim Conservative Retirement
Performance |
| Timeline |
| Elfun Diversified |
| Pgim Conservative |
Elfun Diversified and Pgim Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Pgim Conservative
The main advantage of trading using opposite Elfun Diversified and Pgim Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Pgim Conservative 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 Pgim Conservative will offset losses from the drop in Pgim Conservative's long position.| Elfun Diversified vs. Victory Diversified Stock | Elfun Diversified vs. Diversified Bond Fund | Elfun Diversified vs. Columbia Diversified Equity | Elfun Diversified vs. Madison Diversified Income |
| Pgim Conservative vs. T Rowe Price | Pgim Conservative vs. Calvert Moderate Allocation | Pgim Conservative vs. Dimensional 2065 Target | Pgim Conservative vs. T Rowe Price |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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