Correlation Between Capital BofA and Ruentex Development
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By analyzing existing cross correlation between Capital BofA Merrill and Ruentex Development Co, you can compare the effects of market volatilities on Capital BofA and Ruentex Development 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 Capital BofA with a short position of Ruentex Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital BofA and Ruentex Development.
Diversification Opportunities for Capital BofA and Ruentex Development
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capital and Ruentex is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Capital BofA Merrill and Ruentex Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ruentex Development and Capital BofA 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 Capital BofA Merrill are associated (or correlated) with Ruentex Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ruentex Development has no effect on the direction of Capital BofA i.e., Capital BofA and Ruentex Development go up and down completely randomly.
Pair Corralation between Capital BofA and Ruentex Development
Assuming the 90 days trading horizon Capital BofA Merrill is expected to generate 0.53 times more return on investment than Ruentex Development. However, Capital BofA Merrill is 1.88 times less risky than Ruentex Development. It trades about 0.41 of its potential returns per unit of risk. Ruentex Development Co is currently generating about -0.1 per unit of risk. If you would invest 3,808 in Capital BofA Merrill on September 5, 2024 and sell it today you would earn a total of 214.00 from holding Capital BofA Merrill or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital BofA Merrill vs. Ruentex Development Co
Performance |
| Timeline |
| Capital BofA Merrill |
| Ruentex Development |
Capital BofA and Ruentex Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital BofA and Ruentex Development
The main advantage of trading using opposite Capital BofA and Ruentex Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital BofA position performs unexpectedly, Ruentex Development 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 Ruentex Development will offset losses from the drop in Ruentex Development's long position.| Capital BofA vs. Ruentex Development Co | Capital BofA vs. Symtek Automation Asia | Capital BofA vs. CTCI Corp | Capital BofA vs. Information Technology Total |
| Ruentex Development vs. Ruentex Industries | Ruentex Development vs. Pou Chen Corp | Ruentex Development vs. Fubon Financial Holding | Ruentex Development vs. Cathay Financial Holding |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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