Correlation Between Bank of New York and MASSMU

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

By analyzing existing cross correlation between Bank of New and MASSMU 5077 15 FEB 69, you can compare the effects of market volatilities on Bank of New York and MASSMU 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 MASSMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and MASSMU.

Diversification Opportunities for Bank of New York and MASSMU

0.17

Correlation Coefficient

Bank of New York  MASSMU

Average diversification

The 3 months correlation between Bank and MASSMU is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and MASSMU 5077 15 FEB 69 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASSMU 5077 15 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 MASSMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASSMU 5077 15 has no effect on the direction of Bank of New York i.e., Bank of New York and MASSMU go up and down completely randomly.

Pair Corralation between Bank of New York and MASSMU

Allowing for the 90-day total investment horizon Bank of New is expected to generate 0.69 times more return on investment than MASSMU. However, Bank of New is 1.45 times less risky than MASSMU. It trades about 0.12 of its potential returns per unit of risk. MASSMU 5077 15 FEB 69 is currently generating about -0.16 per unit of risk. If you would invest  7,173  in Bank of New on September 25, 2024 and sell it today you would earn a total of  589.00  from holding Bank of New or generate 8.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	22.22%
Values	Daily Returns

Bank of New  vs.  MASSMU 5077 15 FEB 69

Bank of New York

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of New are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in January 2025.

MASSMU 5077 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASSMU 5077 15 FEB 69 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for MASSMU 5077 15 FEB 69 investors.

Pair Trading with Bank of New York and MASSMU

The main advantage of trading using opposite Bank of New York and MASSMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, MASSMU 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 MASSMU will offset losses from the drop in MASSMU's long position.

The idea behind Bank of New and MASSMU 5077 15 FEB 69 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.