Correlation Between Elfun Government and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Elfun Government and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Mainstay Short.
Diversification Opportunities for Elfun Government and Mainstay Short
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 Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Elfun Government i.e., Elfun Government and Mainstay Short go up and down completely randomly.
Pair Corralation between Elfun Government and Mainstay Short
If you would invest 949.00 in Mainstay Short Duration on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Mainstay Short Duration or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Elfun Government Money vs. Mainstay Short Duration
Performance |
| Timeline |
| Elfun Government Money |
| Mainstay Short Duration |
Elfun Government and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Mainstay Short
The main advantage of trading using opposite Elfun Government and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Elfun Government vs. Sp Smallcap 600 | Elfun Government vs. Lebenthal Lisanti Small | Elfun Government vs. T Rowe Price | Elfun Government vs. Qs Growth Fund |
| Mainstay Short vs. Elfun Government Money | Mainstay Short vs. Intermediate Government Bond | Mainstay Short vs. Voya Government Money | Mainstay Short vs. Ridgeworth Seix Government |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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