Correlation Between Bny Mellon and Global Gold
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and Global Gold 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 Global Gold 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 Global Gold Fund, you can compare the effects of market volatilities on Bny Mellon and Global Gold 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 Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Global Gold.
Diversification Opportunities for Bny Mellon and Global Gold
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bny and Global is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Porate and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund 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 Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Bny Mellon i.e., Bny Mellon and Global Gold go up and down completely randomly.
Pair Corralation between Bny Mellon and Global Gold
Assuming the 90 days horizon Bny Mellon is expected to generate 2.66 times less return on investment than Global Gold. But when comparing it to its historical volatility, Bny Mellon Porate is 6.16 times less risky than Global Gold. It trades about 0.09 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 960.00 in Global Gold Fund on August 30, 2024 and sell it today you would earn a total of 314.00 from holding Global Gold Fund or generate 32.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bny Mellon Porate vs. Global Gold Fund
Performance |
| Timeline |
| Bny Mellon Porate |
| Global Gold Fund |
Bny Mellon and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Global Gold
The main advantage of trading using opposite Bny Mellon and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Bny Mellon vs. Global Gold Fund | Bny Mellon vs. International Investors Gold | Bny Mellon vs. Gold And Precious | Bny Mellon vs. Europac Gold Fund |
| Global Gold vs. First Eagle Gold | Global Gold vs. Aquagold International | Global Gold vs. Morningstar Unconstrained Allocation | Global Gold vs. Thrivent High Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |