Correlation Between BNY Mellon and FFHG
Can any of the company-specific risk be diversified away by investing in both BNY Mellon and FFHG 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 FFHG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNY Mellon High and FFHG, you can compare the effects of market volatilities on BNY Mellon and FFHG 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 FFHG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and FFHG.
Diversification Opportunities for BNY Mellon and FFHG
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BNY and FFHG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon High and FFHG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFHG 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 High are associated (or correlated) with FFHG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFHG has no effect on the direction of BNY Mellon i.e., BNY Mellon and FFHG go up and down completely randomly.
Pair Corralation between BNY Mellon and FFHG
If you would invest 3,223 in FFHG on January 28, 2024 and sell it today you would earn a total of 0.00 from holding FFHG or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
BNY Mellon High vs. FFHG
Performance |
Timeline |
BNY Mellon High |
FFHG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BNY Mellon and FFHG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BNY Mellon and FFHG
The main advantage of trading using opposite BNY Mellon and FFHG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon position performs unexpectedly, FFHG 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 FFHG will offset losses from the drop in FFHG's long position.BNY Mellon vs. Brandywineglobal Globalome Opportunities | BNY Mellon vs. John Hancock Tax Advantaged | BNY Mellon vs. RiverNorth Specialty Finance | BNY Mellon vs. Western Asset Mortgage |
FFHG vs. Cambria Global Momentum | FFHG vs. Cambria Emerging Shareholder | FFHG vs. Cambria Shareholder Yield | FFHG vs. Cambria Foreign Shareholder |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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