Correlation Between The Tocqueville and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both The Tocqueville 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 The Tocqueville and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Tocqueville Fund and Elfun Diversified Fund, you can compare the effects of market volatilities on The Tocqueville 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 The Tocqueville with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Tocqueville and Elfun Diversified.
Diversification Opportunities for The Tocqueville and Elfun Diversified
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THE and Elfun is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding The Tocqueville Fund and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and The Tocqueville 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 The Tocqueville Fund 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 The Tocqueville i.e., The Tocqueville and Elfun Diversified go up and down completely randomly.
Pair Corralation between The Tocqueville and Elfun Diversified
Assuming the 90 days horizon The Tocqueville Fund is expected to generate 1.95 times more return on investment than Elfun Diversified. However, The Tocqueville is 1.95 times more volatile than Elfun Diversified Fund. It trades about 0.35 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.36 per unit of risk. If you would invest 4,439 in The Tocqueville Fund on April 25, 2025 and sell it today you would earn a total of 748.00 from holding The Tocqueville Fund or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Tocqueville Fund vs. Elfun Diversified Fund
Performance |
| Timeline |
| The Tocqueville |
| Elfun Diversified |
The Tocqueville and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Tocqueville and Elfun Diversified
The main advantage of trading using opposite The Tocqueville and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Tocqueville 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.| The Tocqueville vs. Equity Series Class | The Tocqueville vs. Large Cap Fund | The Tocqueville vs. The Tocqueville International | The Tocqueville vs. Heartland Value Plus |
| Elfun Diversified vs. Fidelity Large Cap | Elfun Diversified vs. Qs Large Cap | Elfun Diversified vs. Tax Managed Large Cap | Elfun Diversified vs. Profunds Large Cap Growth |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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