Correlation Between Bank of America and Howard Hughes
Can any of the company-specific risk be diversified away by investing in both Bank of America and Howard Hughes 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 Howard Hughes 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 The Howard Hughes, you can compare the effects of market volatilities on Bank of America and Howard Hughes 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 Howard Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Howard Hughes.
Diversification Opportunities for Bank of America and Howard Hughes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Howard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and The Howard Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Howard Hughes 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 Howard Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Howard Hughes has no effect on the direction of Bank of America i.e., Bank of America and Howard Hughes go up and down completely randomly.
Pair Corralation between Bank of America and Howard Hughes
If you would invest (100.00) in The Howard Hughes on January 11, 2025 and sell it today you would earn a total of 100.00 from holding The Howard Hughes or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. The Howard Hughes
Performance |
| Timeline |
| Bank of America |
| Howard Hughes |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank of America and Howard Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Howard Hughes
The main advantage of trading using opposite Bank of America and Howard Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Howard Hughes 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 Howard Hughes will offset losses from the drop in Howard Hughes' long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| Howard Hughes vs. Stratus Properties | Howard Hughes vs. Mitsui Fudosan Co | Howard Hughes vs. Comstock Holding Companies | Howard Hughes vs. St Joe Company |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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