Correlation Between Elfun Government and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Voya Retirement 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 Retirement 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 Retirement Moderate, you can compare the effects of market volatilities on Elfun Government and Voya Retirement 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 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Voya Retirement.
Diversification Opportunities for Elfun Government and Voya Retirement
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 Retirement Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Moderate 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 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Moderate has no effect on the direction of Elfun Government i.e., Elfun Government and Voya Retirement go up and down completely randomly.
Pair Corralation between Elfun Government and Voya Retirement
Assuming the 90 days horizon Elfun Government Money is expected to generate 54.04 times more return on investment than Voya Retirement. However, Elfun Government is 54.04 times more volatile than Voya Retirement Moderate. It trades about 0.05 of its potential returns per unit of risk. Voya Retirement Moderate is currently generating about 0.14 per unit of risk. If you would invest 96.00 in Elfun Government Money on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Elfun Government Money or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Elfun Government Money vs. Voya Retirement Moderate
Performance |
| Timeline |
| Elfun Government Money |
| Voya Retirement Moderate |
Elfun Government and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Voya Retirement
The main advantage of trading using opposite Elfun Government and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Elfun Government vs. Touchstone Premium Yield | Elfun Government vs. Limited Term Tax | Elfun Government vs. Bbh Intermediate Municipal | Elfun Government vs. Versatile Bond Portfolio |
| Voya Retirement vs. Wilmington Funds | Voya Retirement vs. Matson Money Equity | Voya Retirement vs. Elfun Government Money | Voya Retirement vs. Prudential 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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