Correlation Between Barings Global and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Barings Global and Bny Mellon 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 Barings Global and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Bny Mellon Municipal, you can compare the effects of market volatilities on Barings Global and Bny Mellon 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 Barings Global with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Bny Mellon.
Diversification Opportunities for Barings Global and Bny Mellon
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Bny is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Bny Mellon Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Municipal and Barings Global 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 Barings Global Floating are associated (or correlated) with Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Municipal has no effect on the direction of Barings Global i.e., Barings Global and Bny Mellon go up and down completely randomly.
Pair Corralation between Barings Global and Bny Mellon
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.75 times more return on investment than Bny Mellon. However, Barings Global Floating is 1.33 times less risky than Bny Mellon. It trades about 0.22 of its potential returns per unit of risk. Bny Mellon Municipal is currently generating about 0.08 per unit of risk. If you would invest 715.00 in Barings Global Floating on August 30, 2024 and sell it today you would earn a total of 163.00 from holding Barings Global Floating or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Bny Mellon Municipal
Performance |
| Timeline |
| Barings Global Floating |
| Bny Mellon Municipal |
Barings Global and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Bny Mellon
The main advantage of trading using opposite Barings Global and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Barings Global vs. Floating Rate Fund | Barings Global vs. Lord Abbett Inv | Barings Global vs. HUMANA INC | Barings Global vs. Aquagold International |
| Bny Mellon vs. Barings Global Floating | Bny Mellon vs. Wasatch Global Opportunities | Bny Mellon vs. Commonwealth Global Fund | Bny Mellon vs. Us Global Leaders |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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