Correlation Between Mainstay Short and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Mainstay Short and Elfun Government 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 Mainstay Short and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Short Duration and Elfun Government Money, you can compare the effects of market volatilities on Mainstay Short and Elfun Government 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 Mainstay Short with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Short and Elfun Government.
Diversification Opportunities for Mainstay Short and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Short Duration and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and Mainstay Short 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 Mainstay Short Duration are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Mainstay Short i.e., Mainstay Short and Elfun Government go up and down completely randomly.
Pair Corralation between Mainstay Short and Elfun Government
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 |
Mainstay Short Duration vs. Elfun Government Money
Performance |
| Timeline |
| Mainstay Short Duration |
| Elfun Government Money |
Mainstay Short and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Short and Elfun Government
The main advantage of trading using opposite Mainstay Short and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Short position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| Mainstay Short vs. Elfun Government Money | Mainstay Short vs. Intermediate Government Bond | Mainstay Short vs. Voya Government Money | Mainstay Short vs. Ridgeworth Seix Government |
| Elfun Government vs. Sp Smallcap 600 | Elfun Government vs. Lebenthal Lisanti Small | Elfun Government vs. T Rowe Price | Elfun Government vs. Qs Growth Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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