Correlation Between Bank of America and Monte Carlo
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By analyzing existing cross correlation between Bank of America and Monte Carlo Fashions, you can compare the effects of market volatilities on Bank of America and Monte Carlo 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 Monte Carlo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Monte Carlo.
Diversification Opportunities for Bank of America and Monte Carlo
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Monte is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Monte Carlo Fashions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monte Carlo Fashions 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 Monte Carlo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monte Carlo Fashions has no effect on the direction of Bank of America i.e., Bank of America and Monte Carlo go up and down completely randomly.
Pair Corralation between Bank of America and Monte Carlo
Considering the 90-day investment horizon Bank of America is expected to generate 1.2 times less return on investment than Monte Carlo. But when comparing it to its historical volatility, Bank of America is 1.62 times less risky than Monte Carlo. It trades about 0.16 of its potential returns per unit of risk. Monte Carlo Fashions is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 69,917 in Monte Carlo Fashions on September 2, 2024 and sell it today you would earn a total of 13,943 from holding Monte Carlo Fashions or generate 19.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Monte Carlo Fashions
Performance |
| Timeline |
| Bank of America |
| Monte Carlo Fashions |
Bank of America and Monte Carlo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Monte Carlo
The main advantage of trading using opposite Bank of America and Monte Carlo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Monte Carlo 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 Monte Carlo will offset losses from the drop in Monte Carlo'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 |
| Monte Carlo vs. Sukhjit Starch Chemicals | Monte Carlo vs. Krebs Biochemicals and | Monte Carlo vs. Vertoz Advertising Limited | Monte Carlo vs. JGCHEMICALS LIMITED |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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