Correlation Between Elfun Diversified and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Bny Mellon 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 Diversified and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Bny Mellon Insight, you can compare the effects of market volatilities on Elfun Diversified and Bny Mellon 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 Diversified with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Bny Mellon.
Diversification Opportunities for Elfun Diversified and Bny Mellon
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elfun and Bny is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Bny Mellon Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Insight and Elfun Diversified 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 Diversified Fund are associated (or correlated) with Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Insight has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Bny Mellon go up and down completely randomly.
Pair Corralation between Elfun Diversified and Bny Mellon
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 1.38 times more return on investment than Bny Mellon. However, Elfun Diversified is 1.38 times more volatile than Bny Mellon Insight. It trades about 0.1 of its potential returns per unit of risk. Bny Mellon Insight is currently generating about 0.05 per unit of risk. If you would invest 1,847 in Elfun Diversified Fund on September 12, 2024 and sell it today you would earn a total of 355.00 from holding Elfun Diversified Fund or generate 19.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Bny Mellon Insight
Performance |
| Timeline |
| Elfun Diversified |
| Bny Mellon Insight |
Elfun Diversified and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Bny Mellon
The main advantage of trading using opposite Elfun Diversified and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of | Elfun Diversified vs. Income Fund Of |
| Bny Mellon vs. Stone Ridge Diversified | Bny Mellon vs. Elfun Diversified Fund | Bny Mellon vs. Tax Free Conservative Income | Bny Mellon vs. Wealthbuilder Conservative Allocation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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