Correlation Between Elfun Government and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Elfun Government and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Floating Rate.
Diversification Opportunities for Elfun Government and Floating Rate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Floating is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Elfun Government i.e., Elfun Government and Floating Rate go up and down completely randomly.
Pair Corralation between Elfun Government and Floating Rate
If you would invest 798.00 in Floating Rate Fund on June 4, 2025 and sell it today you would earn a total of 11.00 from holding Floating Rate Fund or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Elfun Government Money vs. Floating Rate Fund
Performance |
| Timeline |
| Elfun Government Money |
| Floating Rate |
Elfun Government and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Floating Rate
The main advantage of trading using opposite Elfun Government and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Elfun Government vs. Rbc China Equity | Elfun Government vs. Dws Equity Sector | Elfun Government vs. Franklin Equity Income | Elfun Government vs. Balanced Fund Retail |
| Floating Rate vs. Oppenheimer Senior Floating | Floating Rate vs. Oppenheimer Senior Floating | Floating Rate vs. Floating Rate Fund | Floating Rate vs. Floating Rate Fund |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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