Correlation Between Stone Ridge and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Stone Ridge 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 Stone Ridge and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Elfun Government Money, you can compare the effects of market volatilities on Stone Ridge 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 Stone Ridge with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Elfun Government.
Diversification Opportunities for Stone Ridge and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified 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 Stone Ridge 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 Stone Ridge Diversified 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 Stone Ridge i.e., Stone Ridge and Elfun Government go up and down completely randomly.
Pair Corralation between Stone Ridge and Elfun Government
If you would invest 1,060 in Stone Ridge Diversified on October 24, 2024 and sell it today you would earn a total of 3.00 from holding Stone Ridge Diversified or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Elfun Government Money
Performance |
| Timeline |
| Stone Ridge Diversified |
| Elfun Government Money |
Stone Ridge and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Elfun Government
The main advantage of trading using opposite Stone Ridge and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge 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.| Stone Ridge vs. Advent Claymore Convertible | Stone Ridge vs. Columbia Convertible Securities | Stone Ridge vs. Gabelli Convertible And | Stone Ridge vs. Virtus Convertible |
| Elfun Government vs. Blackstone Secured Lending | Elfun Government vs. Angel Oak Financial | Elfun Government vs. Gabelli Global Financial | Elfun Government vs. John Hancock Financial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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