Correlation Between Elfun Diversified and Wasatch International
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Wasatch International 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 Wasatch International 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 Wasatch International Opportunities, you can compare the effects of market volatilities on Elfun Diversified and Wasatch International 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 Wasatch International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Wasatch International.
Diversification Opportunities for Elfun Diversified and Wasatch International
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elfun and Wasatch is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Wasatch International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch International 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 Wasatch International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch International has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Wasatch International go up and down completely randomly.
Pair Corralation between Elfun Diversified and Wasatch International
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 0.66 times more return on investment than Wasatch International. However, Elfun Diversified Fund is 1.51 times less risky than Wasatch International. It trades about 0.16 of its potential returns per unit of risk. Wasatch International Opportunities is currently generating about -0.09 per unit of risk. If you would invest 2,236 in Elfun Diversified Fund on August 30, 2025 and sell it today you would earn a total of 109.00 from holding Elfun Diversified Fund or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Wasatch International Opportun
Performance |
| Timeline |
| Elfun Diversified |
| Wasatch International |
Elfun Diversified and Wasatch International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Wasatch International
The main advantage of trading using opposite Elfun Diversified and Wasatch International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Wasatch International 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 Wasatch International will offset losses from the drop in Wasatch International's long position.| Elfun Diversified vs. Summit Global Investments | Elfun Diversified vs. Gmo Quality Fund | Elfun Diversified vs. Semiconductor Ultrasector Profund | Elfun Diversified vs. Aam Select Income |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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