Correlation Between Cogent Communications and Bank of New York Mellon
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and Bank of New York 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 Cogent Communications and Bank of New York Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and The Bank of, you can compare the effects of market volatilities on Cogent Communications and Bank of New York 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 Cogent Communications with a short position of Bank of New York Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Bank of New York Mellon.
Diversification Opportunities for Cogent Communications and Bank of New York Mellon
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogent and Bank is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York Mellon and Cogent Communications 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 Cogent Communications Holdings are associated (or correlated) with Bank of New York Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York Mellon has no effect on the direction of Cogent Communications i.e., Cogent Communications and Bank of New York Mellon go up and down completely randomly.
Pair Corralation between Cogent Communications and Bank of New York Mellon
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to under-perform the Bank of New York Mellon. But the stock apears to be less risky and, when comparing its historical volatility, Cogent Communications Holdings is 1.2 times less risky than Bank of New York Mellon. The stock trades about -0.08 of its potential returns per unit of risk. The The Bank of is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 7,379 in The Bank of on October 23, 2024 and sell it today you would earn a total of 730.00 from holding The Bank of or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. The Bank of
Performance |
| Timeline |
| Cogent Communications |
| Bank of New York Mellon |
Cogent Communications and Bank of New York Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Bank of New York Mellon
The main advantage of trading using opposite Cogent Communications and Bank of New York Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, Bank of New York 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 Bank of New York Mellon will offset losses from the drop in Bank of New York Mellon's long position.| Cogent Communications vs. T Mobile | Cogent Communications vs. China Mobile Limited | Cogent Communications vs. Verizon Communications | Cogent Communications vs. ATT Inc |
| Bank of New York Mellon vs. Neinor Homes SA | Bank of New York Mellon vs. Sun Life Financial | Bank of New York Mellon vs. CVB Financial Corp | Bank of New York Mellon vs. DFS Furniture PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |