Correlation Between Bank of New York Mellon and Baywa AG
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By analyzing existing cross correlation between The Bank of and Baywa AG Vink, you can compare the effects of market volatilities on Bank of New York Mellon and Baywa AG 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 Mellon with a short position of Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York Mellon and Baywa AG.
Diversification Opportunities for Bank of New York Mellon and Baywa AG
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Baywa is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink and Bank of New York 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 The Bank of are associated (or correlated) with Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of Bank of New York Mellon i.e., Bank of New York Mellon and Baywa AG go up and down completely randomly.
Pair Corralation between Bank of New York Mellon and Baywa AG
Assuming the 90 days horizon The Bank of is expected to generate 0.4 times more return on investment than Baywa AG. However, The Bank of is 2.48 times less risky than Baywa AG. It trades about 0.09 of its potential returns per unit of risk. Baywa AG Vink is currently generating about -0.06 per unit of risk. If you would invest 4,540 in The Bank of on November 2, 2024 and sell it today you would earn a total of 3,862 from holding The Bank of or generate 85.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. Baywa AG Vink
Performance |
| Timeline |
| Bank of New York Mellon |
| Baywa AG Vink |
Bank of New York Mellon and Baywa AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York Mellon and Baywa AG
The main advantage of trading using opposite Bank of New York Mellon and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York Mellon position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG's long position.| Bank of New York Mellon vs. CVW CLEANTECH INC | Bank of New York Mellon vs. Caseys General Stores | Bank of New York Mellon vs. Cars Inc | Bank of New York Mellon vs. Fast Retailing Co |
| Baywa AG vs. Caseys General Stores | Baywa AG vs. COSTCO WHOLESALE CDR | Baywa AG vs. TELECOM ITALIA | Baywa AG vs. BJs Wholesale Club |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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