Correlation Between Elfun Government and City National
Can any of the company-specific risk be diversified away by investing in both Elfun Government and City National 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 Government and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and City National Rochdale, you can compare the effects of market volatilities on Elfun Government and City National 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 Government with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and City National.
Diversification Opportunities for Elfun Government and City National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and Elfun Government 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 Government Money are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Elfun Government i.e., Elfun Government and City National go up and down completely randomly.
Pair Corralation between Elfun Government and City National
If you would invest 932.00 in City National Rochdale on September 12, 2024 and sell it today you would earn a total of 12.00 from holding City National Rochdale or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elfun Government Money vs. City National Rochdale
Performance |
| Timeline |
| Elfun Government Money |
| City National Rochdale |
Elfun Government and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and City National
The main advantage of trading using opposite Elfun Government and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard 500 Index | Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard Total Stock |
| City National vs. Hsbc Government Money | City National vs. Elfun Government Money | City National vs. Us Government Securities | City National vs. Aig Government Money |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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