Correlation Between American Beacon and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both American Beacon and Bny Mellon 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 American Beacon and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon International and Bny Mellon Focused, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Bny Mellon.
Diversification Opportunities for American Beacon and Bny Mellon
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Bny is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon International and Bny Mellon Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Focused and American Beacon 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 American Beacon International 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 Focused has no effect on the direction of American Beacon i.e., American Beacon and Bny Mellon go up and down completely randomly.
Pair Corralation between American Beacon and Bny Mellon
If you would invest 1,437 in Bny Mellon Focused on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Bny Mellon Focused or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
American Beacon International vs. Bny Mellon Focused
Performance |
| Timeline |
| American Beacon Inte |
| Bny Mellon Focused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Beacon and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Bny Mellon
The main advantage of trading using opposite American Beacon and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. Alger Responsible Investing | American Beacon vs. American Beacon Small | American Beacon vs. American Beacon International | American Beacon vs. American Beacon International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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