Correlation Between Bank of New York and DMY Squared
Can any of the company-specific risk be diversified away by investing in both Bank of New York and DMY Squared 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 Bank of New York and DMY Squared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and dMY Squared Technology, you can compare the effects of market volatilities on Bank of New York and DMY Squared 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 Bank of New York with a short position of DMY Squared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and DMY Squared.
Diversification Opportunities for Bank of New York and DMY Squared
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and DMY is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and dMY Squared Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on dMY Squared Technology and Bank of New York 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 Bank of New are associated (or correlated) with DMY Squared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of dMY Squared Technology has no effect on the direction of Bank of New York i.e., Bank of New York and DMY Squared go up and down completely randomly.
Pair Corralation between Bank of New York and DMY Squared
Allowing for the 90-day total investment horizon Bank of New is expected to generate 3.02 times more return on investment than DMY Squared. However, Bank of New York is 3.02 times more volatile than dMY Squared Technology. It trades about 0.2 of its potential returns per unit of risk. dMY Squared Technology is currently generating about 0.01 per unit of risk. If you would invest 4,733 in Bank of New on August 27, 2024 and sell it today you would earn a total of 3,281 from holding Bank of New or generate 69.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of New vs. dMY Squared Technology
Performance |
| Timeline |
| Bank of New York |
| dMY Squared Technology |
Bank of New York and DMY Squared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and DMY Squared
The main advantage of trading using opposite Bank of New York and DMY Squared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, DMY Squared 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 DMY Squared will offset losses from the drop in DMY Squared's long position.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| DMY Squared vs. PowerUp Acquisition Corp | DMY Squared vs. Aurora Innovation | DMY Squared vs. HUMANA INC | DMY Squared vs. Aquagold 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |