Correlation Between Bank of America and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Bank of America and Mfs Blended 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 America and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Mfs Blended Research, you can compare the effects of market volatilities on Bank of America and Mfs Blended 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 America with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Mfs Blended.
Diversification Opportunities for Bank of America and Mfs Blended
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and MFS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Bank of America 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 America are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Bank of America i.e., Bank of America and Mfs Blended go up and down completely randomly.
Pair Corralation between Bank of America and Mfs Blended
Considering the 90-day investment horizon Bank of America is expected to generate 2.66 times more return on investment than Mfs Blended. However, Bank of America is 2.66 times more volatile than Mfs Blended Research. It trades about 0.31 of its potential returns per unit of risk. Mfs Blended Research is currently generating about -0.1 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. Mfs Blended Research
Performance |
| Timeline |
| Bank of America |
| Mfs Blended Research |
Bank of America and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Mfs Blended
The main advantage of trading using opposite Bank of America and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Mfs Blended 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 Mfs Blended will offset losses from the drop in Mfs Blended's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |