Correlation Between Upright Growth and Bny Mellon

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

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

Diversification Opportunities for Upright Growth and Bny Mellon

-0.22

Correlation Coefficient

Upright Growth  Bny Mellon

Very good diversification

The 3 months correlation between Upright and Bny is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Income and Bny Mellon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon International and Upright Growth 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 Upright Growth Income 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 International has no effect on the direction of Upright Growth i.e., Upright Growth and Bny Mellon go up and down completely randomly.

Pair Corralation between Upright Growth and Bny Mellon

Assuming the 90 days horizon Upright Growth Income is expected to under-perform the Bny Mellon. In addition to that, Upright Growth is 3.25 times more volatile than Bny Mellon International. It trades about -0.02 of its total potential returns per unit of risk. Bny Mellon International is currently generating about 0.26 per unit of volatility. If you would invest  1,451  in Bny Mellon International on December 20, 2024 and sell it today you would earn a total of  200.00  from holding Bny Mellon International or generate 13.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Upright Growth Income  vs.  Bny Mellon International

Upright Growth Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upright Growth Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Upright Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bny Mellon International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bny Mellon International are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Bny Mellon showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Upright Growth and Bny Mellon

The main advantage of trading using opposite Upright Growth and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Growth 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 Upright Growth Income and Bny Mellon International 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.