Correlation Between BNY Mellon and BKIS
Can any of the company-specific risk be diversified away by investing in both BNY Mellon and BKIS 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 BNY Mellon and BKIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNY Mellon ETF and BKIS, you can compare the effects of market volatilities on BNY Mellon and BKIS 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 BNY Mellon with a short position of BKIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and BKIS.
Diversification Opportunities for BNY Mellon and BKIS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNY and BKIS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon ETF and BKIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKIS and BNY Mellon 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 BNY Mellon ETF are associated (or correlated) with BKIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKIS has no effect on the direction of BNY Mellon i.e., BNY Mellon and BKIS go up and down completely randomly.
Pair Corralation between BNY Mellon and BKIS
Given the investment horizon of 90 days BNY Mellon is expected to generate 1.97 times less return on investment than BKIS. But when comparing it to its historical volatility, BNY Mellon ETF is 1.0 times less risky than BKIS. It trades about 0.04 of its potential returns per unit of risk. BKIS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,068 in BKIS on August 30, 2024 and sell it today you would earn a total of 434.00 from holding BKIS or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.31% |
| Values | Daily Returns |
BNY Mellon ETF vs. BKIS
Performance |
| Timeline |
| BNY Mellon ETF |
| BKIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNY Mellon and BKIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNY Mellon and BKIS
The main advantage of trading using opposite BNY Mellon and BKIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon position performs unexpectedly, BKIS 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 BKIS will offset losses from the drop in BKIS's long position.| BNY Mellon vs. Stance Equity ESG | BNY Mellon vs. Aquagold International | BNY Mellon vs. Morningstar Unconstrained Allocation | BNY Mellon vs. Thrivent High Yield |
| BKIS vs. BNY Mellon ETF | BKIS vs. BNY Mellon International | BKIS vs. BNY Mellon ETF | BKIS vs. First Trust S Network |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |