Correlation Between BNY Mellon and Voya Global
Can any of the company-specific risk be diversified away by investing in both BNY Mellon and Voya Global 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 Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNY Mellon High and Voya Global Equity, you can compare the effects of market volatilities on BNY Mellon and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and Voya Global.
Diversification Opportunities for BNY Mellon and Voya Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNY and Voya is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon High and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global 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 High are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of BNY Mellon i.e., BNY Mellon and Voya Global go up and down completely randomly.
Pair Corralation between BNY Mellon and Voya Global
Considering the 90-day investment horizon BNY Mellon is expected to generate 1.25 times less return on investment than Voya Global. In addition to that, BNY Mellon is 1.17 times more volatile than Voya Global Equity. It trades about 0.22 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.32 per unit of volatility. If you would invest 538.00 in Voya Global Equity on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Voya Global Equity or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNY Mellon High vs. Voya Global Equity
Performance |
| Timeline |
| BNY Mellon High |
| Voya Global Equity |
BNY Mellon and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNY Mellon and Voya Global
The main advantage of trading using opposite BNY Mellon and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| BNY Mellon vs. Credit Suisse Asset | BNY Mellon vs. Mfs Intermediate High | BNY Mellon vs. Eaton Vance Risk | BNY Mellon vs. Nuveen Floating Rate |
| Voya Global vs. Eaton Vance Risk | Voya Global vs. Blackrock Muniholdings Closed | Voya Global vs. DTF Tax Free | Voya Global vs. Eaton Vance Floating |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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