Correlation Between Barings Us and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Us 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 High Yield and Bny Mellon Income, you can compare the effects of market volatilities on Barings Us 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 Us with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Bny Mellon.
Diversification Opportunities for Barings Us and Bny Mellon
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Bny is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Bny Mellon Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Income and Barings Us 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 High Yield 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 Income has no effect on the direction of Barings Us i.e., Barings Us and Bny Mellon go up and down completely randomly.
Pair Corralation between Barings Us and Bny Mellon
Assuming the 90 days horizon Barings Us is expected to generate 5.92 times less return on investment than Bny Mellon. But when comparing it to its historical volatility, Barings High Yield is 4.17 times less risky than Bny Mellon. It trades about 0.22 of its potential returns per unit of risk. Bny Mellon Income is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 678.00 in Bny Mellon Income on November 3, 2024 and sell it today you would earn a total of 30.00 from holding Bny Mellon Income or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Bny Mellon Income
Performance |
| Timeline |
| Barings High Yield |
| Bny Mellon Income |
Barings Us and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Bny Mellon
The main advantage of trading using opposite Barings Us and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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 Us vs. Allianzgi Convertible Income | Barings Us vs. Fidelity Sai Convertible | Barings Us vs. Calamos Dynamic Convertible | Barings Us vs. Absolute Convertible Arbitrage |
| Bny Mellon vs. Angel Oak Financial | Bny Mellon vs. Touchstone Ultra Short | Bny Mellon vs. Ab Bond Inflation | Bny Mellon vs. Doubleline Total Return |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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