Correlation Between Bruce Fund and Bny Mellon

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

By analyzing existing cross correlation between Bruce Fund Bruce and Bny Mellon Alcentra, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Bny Mellon.

Diversification Opportunities for Bruce Fund and Bny Mellon

-0.64

Correlation Coefficient

Bruce Fund  Bny Mellon

Excellent diversification

The 3 months correlation between Bruce and Bny is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Bny Mellon Alcentra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Alcentra and Bruce Fund 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 Bruce Fund Bruce 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 Alcentra has no effect on the direction of Bruce Fund i.e., Bruce Fund and Bny Mellon go up and down completely randomly.

Pair Corralation between Bruce Fund and Bny Mellon

If you would invest  924.00  in Bny Mellon Alcentra on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Bny Mellon Alcentra or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Bruce Fund Bruce  vs.  Bny Mellon Alcentra

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruce Fund Bruce has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Bny Mellon Alcentra

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Bny Mellon Alcentra has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable fundamental indicators, Bny Mellon is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bruce Fund and Bny Mellon

The main advantage of trading using opposite Bruce Fund and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.

The idea behind Bruce Fund Bruce and Bny Mellon Alcentra 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.