Correlation Between Fs Managed and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Fs Managed 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 Fs Managed and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fs Managed Futures and Bny Mellon Small, you can compare the effects of market volatilities on Fs Managed 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 Fs Managed with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Bny Mellon.
Diversification Opportunities for Fs Managed and Bny Mellon
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMFFX and Bny is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Bny Mellon Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Small and Fs Managed 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 Fs Managed Futures 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 Small has no effect on the direction of Fs Managed i.e., Fs Managed and Bny Mellon go up and down completely randomly.
Pair Corralation between Fs Managed and Bny Mellon
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Bny Mellon. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.57 times less risky than Bny Mellon. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Bny Mellon Small is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,911 in Bny Mellon Small on August 30, 2024 and sell it today you would earn a total of 443.00 from holding Bny Mellon Small or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.55% |
| Values | Daily Returns |
Fs Managed Futures vs. Bny Mellon Small
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Bny Mellon Small |
Fs Managed and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Bny Mellon
The main advantage of trading using opposite Fs Managed and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed 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.| Fs Managed vs. Firsthand Technology Opportunities | Fs Managed vs. Mfs Technology Fund | Fs Managed vs. Blackrock Science Technology | Fs Managed vs. Science Technology Fund |
| Bny Mellon vs. Bbh Intermediate Municipal | Bny Mellon vs. The Hartford Municipal | Bny Mellon vs. T Rowe Price | Bny Mellon vs. Morningstar Municipal Bond |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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