Correlation Between Western Asset and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Western Asset and Bny 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 Western Asset and Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Middle and Bny Mellon Strategic, you can compare the effects of market volatilities on Western Asset and Bny 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 Western Asset with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Bny Mellon.
Diversification Opportunities for Western Asset and Bny Mellon
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and Bny is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Middle and Bny Mellon Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Strategic and Western Asset 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 Western Asset Middle are associated (or correlated) with Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Strategic has no effect on the direction of Western Asset i.e., Western Asset and Bny Mellon go up and down completely randomly.
Pair Corralation between Western Asset and Bny Mellon
If you would invest 605.00 in Bny Mellon Strategic on July 5, 2024 and sell it today you would earn a total of 21.00 from holding Bny Mellon Strategic or generate 3.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.35% |
Values | Daily Returns |
Western Asset Middle vs. Bny Mellon Strategic
Performance |
Timeline |
Western Asset Middle |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bny Mellon Strategic |
Western Asset and Bny Mellon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Asset and Bny Mellon
The main advantage of trading using opposite Western Asset and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Bny 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.Western Asset vs. Qs Moderate Growth | Western Asset vs. College Retirement Equities | Western Asset vs. Fidelity Managed Retirement | Western Asset vs. Jpmorgan Smartretirement 2035 |
Bny Mellon vs. Western Asset Managed | Bny Mellon vs. Blackrock Muniholdings Quality | Bny Mellon vs. DTF Tax Free | Bny Mellon vs. John Hancock Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |