Correlation Between BNY Mellon and Tema Monopolies
Can any of the company-specific risk be diversified away by investing in both BNY Mellon and Tema Monopolies 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 Tema Monopolies 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 Tema Monopolies and, you can compare the effects of market volatilities on BNY Mellon and Tema Monopolies 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 Tema Monopolies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNY Mellon and Tema Monopolies.
Diversification Opportunities for BNY Mellon and Tema Monopolies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BNY and Tema is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BNY Mellon ETF and Tema Monopolies and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema Monopolies 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 Tema Monopolies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema Monopolies has no effect on the direction of BNY Mellon i.e., BNY Mellon and Tema Monopolies go up and down completely randomly.
Pair Corralation between BNY Mellon and Tema Monopolies
Given the investment horizon of 90 days BNY Mellon ETF is expected to generate 1.7 times more return on investment than Tema Monopolies. However, BNY Mellon is 1.7 times more volatile than Tema Monopolies and. It trades about 0.13 of its potential returns per unit of risk. Tema Monopolies and is currently generating about 0.03 per unit of risk. If you would invest 10,075 in BNY Mellon ETF on August 2, 2025 and sell it today you would earn a total of 949.00 from holding BNY Mellon ETF or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
BNY Mellon ETF vs. Tema Monopolies and
Performance |
| Timeline |
| BNY Mellon ETF |
| Tema Monopolies |
BNY Mellon and Tema Monopolies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNY Mellon and Tema Monopolies
The main advantage of trading using opposite BNY Mellon and Tema Monopolies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNY Mellon position performs unexpectedly, Tema Monopolies 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 Tema Monopolies will offset losses from the drop in Tema Monopolies' long position.| BNY Mellon vs. Cambiar Aggressive Value | BNY Mellon vs. ProShares Ultra Nasdaq | BNY Mellon vs. OneAscent Emerging Markets | BNY Mellon vs. Barclays ETN FI |
| Tema Monopolies vs. FT Cboe Vest | Tema Monopolies vs. ProShares SP 500 | Tema Monopolies vs. ProShares Ultra Nasdaq | Tema Monopolies vs. Cohen Steers Real |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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