Correlation Between Bny Mellon and Apple
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Strategic and Apple Inc, you can compare the effects of market volatilities on Bny Mellon and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Apple.
Diversification Opportunities for Bny Mellon and Apple
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bny and Apple is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Strategic and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Strategic are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bny Mellon i.e., Bny Mellon and Apple go up and down completely randomly.
Pair Corralation between Bny Mellon and Apple
Considering the 90-day investment horizon Bny Mellon Strategic is expected to under-perform the Apple. But the fund apears to be less risky and, when comparing its historical volatility, Bny Mellon Strategic is 1.96 times less risky than Apple. The fund trades about -0.01 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,587 in Apple Inc on January 19, 2024 and sell it today you would earn a total of 1,218 from holding Apple Inc or generate 7.81% 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 Strategic vs. Apple Inc
Performance |
| Timeline |
| Bny Mellon Strategic |
| Apple Inc |
Bny Mellon and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Apple
The main advantage of trading using opposite Bny Mellon and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Bny Mellon vs. Royce Value Closed | Bny Mellon vs. Tekla Healthcare Investors | Bny Mellon vs. Cohen Steers Qualityome |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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