Correlation Between Bny Mellon and CBH
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and CBH 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 CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Municipalome and CBH, you can compare the effects of market volatilities on Bny Mellon and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and CBH.
Diversification Opportunities for Bny Mellon and CBH
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bny and CBH is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Municipalome and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 Municipalome are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Bny Mellon i.e., Bny Mellon and CBH go up and down completely randomly.
Pair Corralation between Bny Mellon and CBH
If you would invest 716.00 in Bny Mellon Municipalome on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Bny Mellon Municipalome or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bny Mellon Municipalome vs. CBH
Performance |
| Timeline |
| Bny Mellon Municipalome |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bny Mellon and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and CBH
The main advantage of trading using opposite Bny Mellon and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Bny Mellon vs. Blackrock Muniyield | Bny Mellon vs. Blackrock Muni Intermediate | Bny Mellon vs. Blackrock Muniyield Quality | Bny Mellon vs. Blackrock Muniyield Quality |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |