Correlation Between Elfun Diversified and Pioneer High
Can any of the company-specific risk be diversified away by investing in both Elfun Diversified and Pioneer High 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 Diversified and Pioneer High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Diversified Fund and Pioneer High Yield, you can compare the effects of market volatilities on Elfun Diversified and Pioneer High 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 Diversified with a short position of Pioneer High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Diversified and Pioneer High.
Diversification Opportunities for Elfun Diversified and Pioneer High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elfun and Pioneer is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund and Pioneer High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer High Yield and Elfun Diversified 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 Diversified Fund are associated (or correlated) with Pioneer High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer High Yield has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and Pioneer High go up and down completely randomly.
Pair Corralation between Elfun Diversified and Pioneer High
Assuming the 90 days horizon Elfun Diversified Fund is expected to generate 2.62 times more return on investment than Pioneer High. However, Elfun Diversified is 2.62 times more volatile than Pioneer High Yield. It trades about 0.25 of its potential returns per unit of risk. Pioneer High Yield is currently generating about 0.31 per unit of risk. If you would invest 2,134 in Elfun Diversified Fund on June 9, 2025 and sell it today you would earn a total of 127.00 from holding Elfun Diversified Fund or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Diversified Fund vs. Pioneer High Yield
Performance |
| Timeline |
| Elfun Diversified |
| Pioneer High Yield |
Elfun Diversified and Pioneer High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Diversified and Pioneer High
The main advantage of trading using opposite Elfun Diversified and Pioneer High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified position performs unexpectedly, Pioneer High 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 Pioneer High will offset losses from the drop in Pioneer High's long position.| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target |
| Pioneer High vs. Hartford Emerging Markets | Pioneer High vs. Siit Emerging Markets | Pioneer High vs. Ep Emerging Markets | Pioneer High vs. Growth Strategy 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 Stocks Directory module to find actively traded stocks across global markets.
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