Correlation Between Praxis Impact and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Praxis Impact 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 Praxis Impact and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Praxis Impact Bond and Elfun Diversified Fund, you can compare the effects of market volatilities on Praxis Impact 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 Praxis Impact with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Impact and Elfun Diversified.
Diversification Opportunities for Praxis Impact and Elfun Diversified
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Praxis and Elfun is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Impact Bond and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Praxis Impact 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 Praxis Impact Bond 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 Praxis Impact i.e., Praxis Impact and Elfun Diversified go up and down completely randomly.
Pair Corralation between Praxis Impact and Elfun Diversified
Assuming the 90 days horizon Praxis Impact is expected to generate 2.35 times less return on investment than Elfun Diversified. But when comparing it to its historical volatility, Praxis Impact Bond is 1.31 times less risky than Elfun Diversified. It trades about 0.15 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,118 in Elfun Diversified Fund on May 30, 2025 and sell it today you would earn a total of 132.00 from holding Elfun Diversified Fund or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Impact Bond vs. Elfun Diversified Fund
Performance |
| Timeline |
| Praxis Impact Bond |
| Elfun Diversified |
Praxis Impact and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Impact and Elfun Diversified
The main advantage of trading using opposite Praxis Impact and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Impact 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.| Praxis Impact vs. Lincoln Inflation Plus | Praxis Impact vs. Great West Inflation Protected Securities | Praxis Impact vs. Tiaa Cref Inflation Link | Praxis Impact vs. Ab Bond Inflation |
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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