Correlation Between First Trust and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Energy and Bny Mellon Municipal, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Bny Mellon.
Diversification Opportunities for First Trust and Bny Mellon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Bny is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Energy and Bny Mellon Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Municipal and First Trust 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 First Trust Energy 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 Municipal has no effect on the direction of First Trust i.e., First Trust and Bny Mellon go up and down completely randomly.
Pair Corralation between First Trust and Bny Mellon
If you would invest 1,038 in Bny Mellon Municipal on November 5, 2024 and sell it today you would earn a total of 6.00 from holding Bny Mellon Municipal or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
First Trust Energy vs. Bny Mellon Municipal
Performance |
| Timeline |
| First Trust Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bny Mellon Municipal |
First Trust and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Bny Mellon
The main advantage of trading using opposite First Trust and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.| First Trust vs. Eagle Point Income | First Trust vs. European Equity Closed | First Trust vs. John Hancock Income | First Trust vs. First Trust Intermediate |
| Bny Mellon vs. Tekla Healthcare Opportunities | Bny Mellon vs. Flaherty Crumrine Preferred | Bny Mellon vs. Flaherty Crumrine Total | Bny Mellon vs. Calamos Dynamic Convertible |
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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