Correlation Between Elfun Government and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Sterling Capital 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 Sterling Capital 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 Sterling Capital Porate, you can compare the effects of market volatilities on Elfun Government and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Sterling Capital.
Diversification Opportunities for Elfun Government and Sterling Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Sterling Capital Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Porate 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Porate has no effect on the direction of Elfun Government i.e., Elfun Government and Sterling Capital go up and down completely randomly.
Pair Corralation between Elfun Government and Sterling Capital
If you would invest 698.00 in Sterling Capital Porate on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Sterling Capital Porate or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Government Money vs. Sterling Capital Porate
Performance |
| Timeline |
| Elfun Government Money |
| Sterling Capital Porate |
Elfun Government and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Sterling Capital
The main advantage of trading using opposite Elfun Government and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Elfun Government vs. Dreyfus Natural Resources | Elfun Government vs. Gamco Natural Resources | Elfun Government vs. Adams Natural Resources | Elfun Government vs. Gmo Resources |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital South |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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