Correlation Between American Funds and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both American Funds 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 Funds 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 Funds Fundamental and Bny Mellon Focused, you can compare the effects of market volatilities on American Funds 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 Funds with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Bny Mellon.
Diversification Opportunities for American Funds and Bny Mellon
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Bny is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental 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 Funds 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 Funds Fundamental 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 Funds i.e., American Funds and Bny Mellon go up and down completely randomly.
Pair Corralation between American Funds and Bny Mellon
If you would invest 8,194 in American Funds Fundamental on October 23, 2024 and sell it today you would earn a total of 144.00 from holding American Funds Fundamental or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
American Funds Fundamental vs. Bny Mellon Focused
Performance |
| Timeline |
| American Funds Funda |
| Bny Mellon Focused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Funds and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Bny Mellon
The main advantage of trading using opposite American Funds and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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 Funds vs. Small Pany Growth | American Funds vs. Needham Small Cap | American Funds vs. Praxis Small Cap | American Funds vs. Franklin Small Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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