Correlation Between Balanced Fund and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Balanced Fund 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 Balanced Fund and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Elfun Diversified Fund, you can compare the effects of market volatilities on Balanced Fund 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 Balanced Fund with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Elfun Diversified.
Diversification Opportunities for Balanced Fund and Elfun Diversified
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Balanced and Elfun is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Balanced Fund 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 Balanced Fund Retail 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 Balanced Fund i.e., Balanced Fund and Elfun Diversified go up and down completely randomly.
Pair Corralation between Balanced Fund and Elfun Diversified
Assuming the 90 days horizon Balanced Fund Retail is expected to generate 1.15 times more return on investment than Elfun Diversified. However, Balanced Fund is 1.15 times more volatile than Elfun Diversified Fund. It trades about 0.24 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.25 per unit of risk. If you would invest 1,254 in Balanced Fund Retail on June 5, 2025 and sell it today you would earn a total of 76.00 from holding Balanced Fund Retail or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Elfun Diversified Fund
Performance |
| Timeline |
| Balanced Fund Retail |
| Elfun Diversified |
Balanced Fund and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Elfun Diversified
The main advantage of trading using opposite Balanced Fund and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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.| Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Thrivent High Yield | Balanced Fund vs. Morningstar Unconstrained Allocation | Balanced Fund vs. Via Renewables |
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Aggregate |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |