Correlation Between BNY Mellon and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both BNY Mellon and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg Barclays, you can compare the effects of market volatilities on BNY Mellon and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and SPDR Bloomberg.
Diversification Opportunities for BNY Mellon and SPDR Bloomberg
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNY and SPDR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon ETF and SPDR Bloomberg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Barclays 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Barclays has no effect on the direction of BNY Mellon i.e., BNY Mellon and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between BNY Mellon and SPDR Bloomberg
Given the investment horizon of 90 days BNY Mellon is expected to generate 1.22 times less return on investment than SPDR Bloomberg. But when comparing it to its historical volatility, BNY Mellon ETF is 12.95 times less risky than SPDR Bloomberg. It trades about 0.55 of its potential returns per unit of risk. SPDR Bloomberg Barclays is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,182 in SPDR Bloomberg Barclays on September 3, 2024 and sell it today you would earn a total of 276.00 from holding SPDR Bloomberg Barclays or generate 12.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNY Mellon ETF vs. SPDR Bloomberg Barclays
Performance |
| Timeline |
| BNY Mellon ETF |
| SPDR Bloomberg Barclays |
BNY Mellon and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNY Mellon and SPDR Bloomberg
The main advantage of trading using opposite BNY Mellon and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| BNY Mellon vs. SPDR SSgA Ultra | BNY Mellon vs. SPDR Bloomberg Barclays | BNY Mellon vs. American Century ETF |
| SPDR Bloomberg vs. SPDR DoubleLine Emerging | SPDR Bloomberg vs. SPDR SSGA Fixed | SPDR Bloomberg vs. SPDR Series Trust | SPDR Bloomberg vs. SSGA Active Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |