Correlation Between Bank of New York and 78466CAC0

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Can any of the company-specific risk be diversified away by investing in both Bank of New York and 78466CAC0 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 Bank of New York and 78466CAC0 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and SSC Technologies 55, you can compare the effects of market volatilities on Bank of New York and 78466CAC0 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 Bank of New York with a short position of 78466CAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and 78466CAC0.

Diversification Opportunities for Bank of New York and 78466CAC0

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Bank and 78466CAC0 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and SSC Technologies 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies and Bank of New York 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 The Bank of are associated (or correlated) with 78466CAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies has no effect on the direction of Bank of New York i.e., Bank of New York and 78466CAC0 go up and down completely randomly.

Pair Corralation between Bank of New York and 78466CAC0

Allowing for the 90-day total investment horizon The Bank of is expected to generate 3.81 times more return on investment than 78466CAC0. However, Bank of New York is 3.81 times more volatile than SSC Technologies 55. It trades about 0.15 of its potential returns per unit of risk. SSC Technologies 55 is currently generating about -0.11 per unit of risk. If you would invest  10,351  in The Bank of on September 6, 2025 and sell it today you would earn a total of  1,051  from holding The Bank of or generate 10.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.19%
ValuesDaily Returns

The Bank of  vs.  SSC Technologies 55

 Performance 
       Timeline  
Bank of New York 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Bank of are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in January 2026.
SSC Technologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SSC Technologies 55 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 78466CAC0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bank of New York and 78466CAC0 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bank of New York and 78466CAC0

The main advantage of trading using opposite Bank of New York and 78466CAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, 78466CAC0 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 78466CAC0 will offset losses from the drop in 78466CAC0's long position.
The idea behind The Bank of and SSC Technologies 55 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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