Correlation Between Elfun Government and Janus Flexible
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Janus Flexible 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 Janus Flexible 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 Janus Flexible Bond, you can compare the effects of market volatilities on Elfun Government and Janus Flexible 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 Janus Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Janus Flexible.
Diversification Opportunities for Elfun Government and Janus Flexible
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Janus Flexible Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Flexible Bond 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 Janus Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Flexible Bond has no effect on the direction of Elfun Government i.e., Elfun Government and Janus Flexible go up and down completely randomly.
Pair Corralation between Elfun Government and Janus Flexible
Assuming the 90 days horizon Elfun Government is expected to generate 1.01 times less return on investment than Janus Flexible. But when comparing it to its historical volatility, Elfun Government Money is 1.86 times less risky than Janus Flexible. It trades about 0.08 of its potential returns per unit of risk. Janus Flexible Bond is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 899.00 in Janus Flexible Bond on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Janus Flexible Bond or generate 4.0% 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. Janus Flexible Bond
Performance |
| Timeline |
| Elfun Government Money |
| Janus Flexible Bond |
Elfun Government and Janus Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Janus Flexible
The main advantage of trading using opposite Elfun Government and Janus Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Janus Flexible 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 Janus Flexible will offset losses from the drop in Janus Flexible'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 |
| Janus Flexible vs. Janus Global Allocation | Janus Flexible vs. Janus Global Allocation | Janus Flexible vs. Janus Global Allocation | Janus Flexible vs. Janus Global 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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