Correlation Between Mm Sp and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Mm Sp 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 Mm Sp and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mm Sp 500 and Elfun Diversified Fund, you can compare the effects of market volatilities on Mm Sp 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 Mm Sp with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mm Sp and Elfun Diversified.
Diversification Opportunities for Mm Sp and Elfun Diversified
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between MMFFX and Elfun is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mm Sp 500 and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Mm Sp 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 Mm Sp 500 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 Mm Sp i.e., Mm Sp and Elfun Diversified go up and down completely randomly.
Pair Corralation between Mm Sp and Elfun Diversified
Assuming the 90 days horizon Mm Sp 500 is expected to generate 1.58 times more return on investment than Elfun Diversified. However, Mm Sp is 1.58 times more volatile than Elfun Diversified Fund. It trades about 0.11 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.14 per unit of risk. If you would invest 1,453 in Mm Sp 500 on August 19, 2025 and sell it today you would earn a total of 75.00 from holding Mm Sp 500 or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mm Sp 500 vs. Elfun Diversified Fund
Performance |
| Timeline |
| Mm Sp 500 |
| Elfun Diversified |
Mm Sp and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mm Sp and Elfun Diversified
The main advantage of trading using opposite Mm Sp and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mm Sp 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.| Mm Sp vs. Enhanced Fixed Income | Mm Sp vs. Morningstar International Equity | Mm Sp vs. Dodge International Stock | Mm Sp vs. Ab Select Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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