Correlation Between Bank of New York Mellon and KBC Ancora
Can any of the company-specific risk be diversified away by investing in both Bank of New York Mellon and KBC Ancora 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 Mellon and KBC Ancora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and KBC Ancora SCA, you can compare the effects of market volatilities on Bank of New York Mellon and KBC Ancora 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 KBC Ancora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York Mellon and KBC Ancora.
Diversification Opportunities for Bank of New York Mellon and KBC Ancora
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and KBC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and KBC Ancora SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Ancora SCA 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 KBC Ancora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Ancora SCA has no effect on the direction of Bank of New York Mellon i.e., Bank of New York Mellon and KBC Ancora go up and down completely randomly.
Pair Corralation between Bank of New York Mellon and KBC Ancora
Assuming the 90 days horizon The Bank of is expected to generate 1.34 times more return on investment than KBC Ancora. However, Bank of New York Mellon is 1.34 times more volatile than KBC Ancora SCA. It trades about 0.17 of its potential returns per unit of risk. KBC Ancora SCA is currently generating about 0.0 per unit of risk. If you would invest 7,028 in The Bank of on August 25, 2024 and sell it today you would earn a total of 460.00 from holding The Bank of or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. KBC Ancora SCA
Performance |
| Timeline |
| Bank of New York Mellon |
| KBC Ancora SCA |
Bank of New York Mellon and KBC Ancora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York Mellon and KBC Ancora
The main advantage of trading using opposite Bank of New York Mellon and KBC Ancora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York Mellon position performs unexpectedly, KBC Ancora 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 KBC Ancora will offset losses from the drop in KBC Ancora's long position.| Bank of New York Mellon vs. CI GAMES SA | Bank of New York Mellon vs. TSOGO SUN GAMING | Bank of New York Mellon vs. Ameriprise Financial | Bank of New York Mellon vs. Games Workshop Group |
| KBC Ancora vs. The Bank of | KBC Ancora vs. Ares Management Corp | KBC Ancora vs. Superior Plus Corp | KBC Ancora vs. NMI Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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