Correlation Between Elfun Government and Mainstay Common
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Mainstay Common 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 Mainstay Common 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 Mainstay Mon Stock, you can compare the effects of market volatilities on Elfun Government and Mainstay Common 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 Mainstay Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Mainstay Common.
Diversification Opportunities for Elfun Government and Mainstay Common
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock 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 Mainstay Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Elfun Government i.e., Elfun Government and Mainstay Common go up and down completely randomly.
Pair Corralation between Elfun Government and Mainstay Common
If you would invest 3,967 in Mainstay Mon Stock on December 4, 2024 and sell it today you would earn a total of 2.00 from holding Mainstay Mon Stock or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Elfun Government Money vs. Mainstay Mon Stock
Performance |
| Timeline |
| Elfun Government Money |
| Mainstay Mon Stock |
Elfun Government and Mainstay Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Mainstay Common
The main advantage of trading using opposite Elfun Government and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Mainstay Common 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 Mainstay Common will offset losses from the drop in Mainstay Common's long position.| Elfun Government vs. Blackrock Health Sciences | Elfun Government vs. Alphacentric Lifesci Healthcare | Elfun Government vs. Health Care Fund | Elfun Government vs. Eventide Healthcare Life |
| Mainstay Common vs. Siit Emerging Markets | Mainstay Common vs. Hartford Schroders Emerging | Mainstay Common vs. Jpmorgan Emerging Markets | Mainstay Common vs. Rbc Emerging Markets |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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