Correlation Between Bny Mellon and Dunham High
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and Dunham High 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 Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Bond and Dunham High Yield, you can compare the effects of market volatilities on Bny Mellon and Dunham High 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 Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Dunham High.
Diversification Opportunities for Bny Mellon and Dunham High
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bny and Dunham is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Bond and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield 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 Bond are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Bny Mellon i.e., Bny Mellon and Dunham High go up and down completely randomly.
Pair Corralation between Bny Mellon and Dunham High
Assuming the 90 days horizon Bny Mellon is expected to generate 1.74 times less return on investment than Dunham High. In addition to that, Bny Mellon is 2.84 times more volatile than Dunham High Yield. It trades about 0.08 of its total potential returns per unit of risk. Dunham High Yield is currently generating about 0.37 per unit of volatility. If you would invest 877.00 in Dunham High Yield on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Dunham High Yield or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bny Mellon Bond vs. Dunham High Yield
Performance |
| Timeline |
| Bny Mellon Bond |
| Dunham High Yield |
Bny Mellon and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Dunham High
The main advantage of trading using opposite Bny Mellon and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, Dunham High 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 Dunham High will offset losses from the drop in Dunham High's long position.| Bny Mellon vs. T Rowe Price | Bny Mellon vs. Vanguard Financials Index | Bny Mellon vs. Royce Global Financial | Bny Mellon vs. Financial Industries Fund |
| Dunham High vs. Prudential High Yield | Dunham High vs. HUMANA INC | Dunham High vs. Aquagold International | Dunham High vs. Barloworld Ltd ADR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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