Correlation Between Elfun Government and State Street
Can any of the company-specific risk be diversified away by investing in both Elfun Government and State Street 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 State Street 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 State Street Premier, you can compare the effects of market volatilities on Elfun Government and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and State Street.
Diversification Opportunities for Elfun Government and State Street
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elfun and State is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and State Street Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Premier 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Premier has no effect on the direction of Elfun Government i.e., Elfun Government and State Street go up and down completely randomly.
Pair Corralation between Elfun Government and State Street
If you would invest 10,526 in State Street Premier on April 30, 2025 and sell it today you would earn a total of 2,402 from holding State Street Premier or generate 22.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Elfun Government Money vs. State Street Premier
Performance |
| Timeline |
| Elfun Government Money |
| State Street Premier |
Elfun Government and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and State Street
The main advantage of trading using opposite Elfun Government and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Elfun Government vs. Ivy Natural Resources | Elfun Government vs. Pimco Energy Tactical | Elfun Government vs. Hennessy Bp Energy | Elfun Government vs. Calvert Global Energy |
| State Street vs. Rbc Emerging Markets | State Street vs. Pace International Emerging | State Street vs. Oberweis Emerging Growth | State Street vs. Balanced Strategy 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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