Correlation Between BNY Mellon and BKIS

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

By analyzing existing cross correlation between BNY Mellon ETF and BKIS, you can compare the effects of market volatilities on BNY Mellon and BKIS 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 BKIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and BKIS.

Diversification Opportunities for BNY Mellon and BKIS

0.0

Correlation Coefficient

BNY Mellon  BKIS

Pay attention - limited upside

The 3 months correlation between BNY and BKIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon ETF and BKIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKIS 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 ETF are associated (or correlated) with BKIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKIS has no effect on the direction of BNY Mellon i.e., BNY Mellon and BKIS go up and down completely randomly.

Pair Corralation between BNY Mellon and BKIS

If you would invest  4,828  in BNY Mellon ETF on October 27, 2024 and sell it today you would earn a total of  134.00  from holding BNY Mellon ETF or generate 2.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

BNY Mellon ETF  vs.  BKIS

BNY Mellon ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BNY Mellon ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, BNY Mellon is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

BKIS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BKIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, BKIS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BNY Mellon and BKIS

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

The idea behind BNY Mellon ETF and BKIS 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.