Correlation Between CM AM and BNY Mellon
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By analyzing existing cross correlation between CM AM Monplus NE and BNY Mellon Global, you can compare the effects of market volatilities on CM AM and BNY Mellon 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 CM AM with a short position of BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and BNY Mellon.
Diversification Opportunities for CM AM and BNY Mellon
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0P0001F96C and BNY is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and BNY Mellon Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon Global and CM AM 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 CM AM Monplus NE are associated (or correlated) with BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Global has no effect on the direction of CM AM i.e., CM AM and BNY Mellon go up and down completely randomly.
Pair Corralation between CM AM and BNY Mellon
Assuming the 90 days trading horizon CM AM Monplus NE is expected to generate 0.02 times more return on investment than BNY Mellon. However, CM AM Monplus NE is 44.42 times less risky than BNY Mellon. It trades about 1.11 of its potential returns per unit of risk. BNY Mellon Global is currently generating about -0.12 per unit of risk. If you would invest 10,618 in CM AM Monplus NE on October 11, 2024 and sell it today you would earn a total of 26.00 from holding CM AM Monplus NE or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CM AM Monplus NE vs. BNY Mellon Global
Performance |
| Timeline |
| CM AM Monplus |
| BNY Mellon Global |
CM AM and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and BNY Mellon
The main advantage of trading using opposite CM AM and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon's long position.| CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. DWS Aktien Strategie |
| BNY Mellon vs. Azvalor Global Value | BNY Mellon vs. JPM Global Natural | BNY Mellon vs. BGF Global Allocation | BNY Mellon vs. Cobas Global PP |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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