Correlation Between Bank of New York and Investor

By analyzing existing cross correlation between Bank Of New and Investor Ab Stockhol, you can compare the effects of market volatilities on Bank of New York and Investor 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 Bank of New York with a short position of Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Investor.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both Bank of New York and Investor 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 Bank of New York and Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Bank of New York and Investor

0.32
  Correlation Coefficient
Bank of New York
Investor Ab Stockhol

Weak diversification

The 3 months correlation between Bank of New York and Investor is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of New and Investor Ab Stockhol in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Investor Ab Stockhol and Bank of New York 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 Bank Of New are associated (or correlated) with Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor Ab Stockhol has no effect on the direction of Bank of New York i.e., Bank of New York and Investor go up and down completely randomly.

Pair Corralation between Bank of New York and Investor

Allowing for the 90-day total investment horizon Bank Of New is expected to generate 2.49 times more return on investment than Investor. However, Bank of New York is 2.49 times more volatile than Investor Ab Stockhol. It trades about 0.15 of its potential returns per unit of risk. Investor Ab Stockhol is currently generating about -0.1 per unit of risk. If you would invest  4,949  in Bank Of New on May 5, 2021 and sell it today you would earn a total of  251.00  from holding Bank Of New or generate 5.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bank Of New  vs.  Investor Ab Stockhol

 Performance (%) 
      Timeline 
Bank of New York 
 Bank of New York Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bank Of New are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward-looking signals, Bank of New York is not utilizing all of its potentials. The new stock price confusion, may contribute to short-horizon losses for the traders.

Bank of New York Price Channel

Investor Ab Stockhol 
 Investor Performance
0 of 100
Over the last 90 days Investor Ab Stockhol has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2021. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Investor Price Channel

Bank of New York and Investor Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bank of New York and Investor

The main advantage of trading using opposite Bank of New York and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor's long position.
The idea behind Bank Of New and Investor Ab Stockhol pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go