Correlation Between Bny Mellon and The Hartford
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Porate and The Hartford Equity, you can compare the effects of market volatilities on Bny Mellon and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and The Hartford.
Diversification Opportunities for Bny Mellon and The Hartford
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bny and The is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Porate and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity 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 Porate are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Equity has no effect on the direction of Bny Mellon i.e., Bny Mellon and The Hartford go up and down completely randomly.
Pair Corralation between Bny Mellon and The Hartford
Assuming the 90 days horizon Bny Mellon Porate is expected to generate 0.46 times more return on investment than The Hartford. However, Bny Mellon Porate is 2.17 times less risky than The Hartford. It trades about 0.3 of its potential returns per unit of risk. The Hartford Equity is currently generating about -0.01 per unit of risk. If you would invest 1,217 in Bny Mellon Porate on November 28, 2024 and sell it today you would earn a total of 17.00 from holding Bny Mellon Porate or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bny Mellon Porate vs. The Hartford Equity
Performance |
| Timeline |
| Bny Mellon Porate |
| Hartford Equity |
Bny Mellon and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and The Hartford
The main advantage of trading using opposite Bny Mellon and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Bny Mellon vs. Madison Diversified Income | Bny Mellon vs. Principal Lifetime Hybrid | Bny Mellon vs. Jhancock Diversified Macro | Bny Mellon vs. Elfun Diversified Fund |
| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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