Correlation Between MYFAIR GOLD and BBVA Banco
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD and BBVA Banco 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 MYFAIR GOLD and BBVA Banco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and BBVA Banco Frances, you can compare the effects of market volatilities on MYFAIR GOLD and BBVA Banco 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 MYFAIR GOLD with a short position of BBVA Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and BBVA Banco.
Diversification Opportunities for MYFAIR GOLD and BBVA Banco
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MYFAIR and BBVA is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and BBVA Banco Frances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVA Banco Frances and MYFAIR GOLD 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 MYFAIR GOLD P are associated (or correlated) with BBVA Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVA Banco Frances has no effect on the direction of MYFAIR GOLD i.e., MYFAIR GOLD and BBVA Banco go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and BBVA Banco
If you would invest 114.00 in MYFAIR GOLD P on October 10, 2024 and sell it today you would lose (3.00) from holding MYFAIR GOLD P or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. BBVA Banco Frances
Performance |
| Timeline |
| MYFAIR GOLD P |
| BBVA Banco Frances |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
MYFAIR GOLD and BBVA Banco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and BBVA Banco
The main advantage of trading using opposite MYFAIR GOLD and BBVA Banco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD position performs unexpectedly, BBVA Banco 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 BBVA Banco will offset losses from the drop in BBVA Banco's long position.| MYFAIR GOLD vs. Wheaton Precious Metals | MYFAIR GOLD vs. Superior Plus Corp | MYFAIR GOLD vs. NMI Holdings | MYFAIR GOLD vs. SIVERS SEMICONDUCTORS AB |
| BBVA Banco vs. INTERCONT HOTELS | BBVA Banco vs. TYSON FOODS A | BBVA Banco vs. Dalata Hotel Group | BBVA Banco vs. GWILLI FOOD |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |