Correlation Between Bank of America and Hydrogen Freehold
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By analyzing existing cross correlation between Bank of America and Hydrogen Freehold Leasehold, you can compare the effects of market volatilities on Bank of America and Hydrogen Freehold 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 Hydrogen Freehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Hydrogen Freehold.
Diversification Opportunities for Bank of America and Hydrogen Freehold
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Hydrogen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Hydrogen Freehold Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Freehold 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 Hydrogen Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Freehold has no effect on the direction of Bank of America i.e., Bank of America and Hydrogen Freehold go up and down completely randomly.
Pair Corralation between Bank of America and Hydrogen Freehold
Considering the 90-day investment horizon Bank of America is expected to generate 1.35 times more return on investment than Hydrogen Freehold. However, Bank of America is 1.35 times more volatile than Hydrogen Freehold Leasehold. It trades about 0.06 of its potential returns per unit of risk. Hydrogen Freehold Leasehold is currently generating about 0.02 per unit of risk. If you would invest 3,223 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,528 from holding Bank of America or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.65% |
| Values | Daily Returns |
Bank of America vs. Hydrogen Freehold Leasehold
Performance |
| Timeline |
| Bank of America |
| Hydrogen Freehold |
Bank of America and Hydrogen Freehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Hydrogen Freehold
The main advantage of trading using opposite Bank of America and Hydrogen Freehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Hydrogen Freehold 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 Hydrogen Freehold will offset losses from the drop in Hydrogen Freehold's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| Hydrogen Freehold vs. Wp Energy Public | Hydrogen Freehold vs. DTC Industries Public | Hydrogen Freehold vs. XSpring Capital Public | Hydrogen Freehold vs. Yuasa Battery Public |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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