Correlation Between Bank of New York and Blucora

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

Diversification Opportunities for Bank of New York and Blucora

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Bank of New York and Blucora is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of New and Blucora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blucora 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 Bank Of New are associated (or correlated) with Blucora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blucora has no effect on the direction of Bank of New York i.e., Bank of New York and Blucora go up and down completely randomly.

Pair Corralation between Bank of New York and Blucora

Allowing for the 90-day total investment horizon Bank Of New is expected to under-perform the Blucora. But the stock apears to be less risky and, when comparing its historical volatility, Bank Of New is 1.11 times less risky than Blucora. The stock trades about -0.21 of its potential returns per unit of risk. The Blucora is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,769  in Blucora on April 1, 2022 and sell it today you would earn a total of  86.00  from holding Blucora or generate 4.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bank Of New  vs.  Blucora

 Performance (%) 
      Timeline 
Bank of New York 
Bank of New York Performance
0 of 100
Over the last 90 days Bank Of New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain fairly strong which may send shares a bit higher in July 2022. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0321
Payout Ratio
0.33
Last Split Factor
9434:10000
Forward Annual Dividend Rate
1.36
Dividend Date
2022-05-11
Ex Dividend Date
2022-04-27
Last Split Date
2007-07-02

Bank of New York Price Channel

Blucora 
Blucora Performance
0 of 100
Over the last 90 days Blucora has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Blucora is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Structure and Payout Changes

Last Split Factor
1:10
Ex Dividend Date
2008-01-09
Last Split Date
2002-09-13

Blucora Price Channel

Bank of New York and Blucora Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bank of New York and Blucora

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

Bank Of New

Pair trading matchups for Bank of New York

The idea behind Bank Of New and Blucora 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.

Blucora

Pair trading matchups for Blucora

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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