Correlation Between Elfun Government and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Voya Bond 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 Voya Bond 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 Voya Bond Index, you can compare the effects of market volatilities on Elfun Government and Voya Bond 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 Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Voya Bond.
Diversification Opportunities for Elfun Government and Voya Bond
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index 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 Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Elfun Government i.e., Elfun Government and Voya Bond go up and down completely randomly.
Pair Corralation between Elfun Government and Voya Bond
Assuming the 90 days horizon Elfun Government Money is expected to generate 59.64 times more return on investment than Voya Bond. However, Elfun Government is 59.64 times more volatile than Voya Bond Index. It trades about 0.04 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.06 per unit of risk. If you would invest 95.00 in Elfun Government Money on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Elfun Government Money or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.51% |
| Values | Daily Returns |
Elfun Government Money vs. Voya Bond Index
Performance |
| Timeline |
| Elfun Government Money |
| Voya Bond Index |
Elfun Government and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Voya Bond
The main advantage of trading using opposite Elfun Government and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Voya Bond 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 Voya Bond will offset losses from the drop in Voya Bond'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 |
| Voya Bond vs. SCOR PK | Voya Bond vs. Morningstar Unconstrained Allocation | Voya Bond vs. Via Renewables | Voya Bond vs. Bondbloxx ETF Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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