Correlation Between Auer Growth and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Bny Mellon Massachusetts, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Bny Mellon.
Diversification Opportunities for Auer Growth and Bny Mellon
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Auer and Bny is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Bny Mellon Massachusetts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Massachusetts and Auer Growth 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 Auer Growth Fund 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 Massachusetts has no effect on the direction of Auer Growth i.e., Auer Growth and Bny Mellon go up and down completely randomly.
Pair Corralation between Auer Growth and Bny Mellon
Assuming the 90 days horizon Auer Growth Fund is expected to generate 5.89 times more return on investment than Bny Mellon. However, Auer Growth is 5.89 times more volatile than Bny Mellon Massachusetts. It trades about 0.08 of its potential returns per unit of risk. Bny Mellon Massachusetts is currently generating about 0.06 per unit of risk. If you would invest 1,446 in Auer Growth Fund on September 12, 2024 and sell it today you would earn a total of 307.00 from holding Auer Growth Fund or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Bny Mellon Massachusetts
Performance |
| Timeline |
| Auer Growth Fund |
| Bny Mellon Massachusetts |
Auer Growth and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Bny Mellon
The main advantage of trading using opposite Auer Growth and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Bny Mellon vs. Auer Growth Fund | Bny Mellon vs. Omni Small Cap Value | Bny Mellon vs. Nasdaq 100 Index Fund | Bny Mellon vs. Ab 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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