Correlation Between Bank of America and More Mutual
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By analyzing existing cross correlation between Bank of America and More Mutual Fund, you can compare the effects of market volatilities on Bank of America and More Mutual 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 More Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and More Mutual.
Diversification Opportunities for Bank of America and More Mutual
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and More is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and More Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on More Mutual Fund 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 More Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of More Mutual Fund has no effect on the direction of Bank of America i.e., Bank of America and More Mutual go up and down completely randomly.
Pair Corralation between Bank of America and More Mutual
Considering the 90-day investment horizon Bank of America is expected to generate 2.05 times less return on investment than More Mutual. In addition to that, Bank of America is 1.29 times more volatile than More Mutual Fund. It trades about 0.06 of its total potential returns per unit of risk. More Mutual Fund is currently generating about 0.16 per unit of volatility. If you would invest 579,000 in More Mutual Fund on August 31, 2024 and sell it today you would earn a total of 569,000 from holding More Mutual Fund or generate 98.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.62% |
| Values | Daily Returns |
Bank of America vs. More Mutual Fund
Performance |
| Timeline |
| Bank of America |
| More Mutual Fund |
Bank of America and More Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and More Mutual
The main advantage of trading using opposite Bank of America and More Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, More Mutual 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 More Mutual will offset losses from the drop in More Mutual'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 |
| More Mutual vs. Tachlit Indices Mutual | More Mutual vs. iShares SP 500 | More Mutual vs. KSM Mutual Funds | More Mutual vs. KSM Mutual Funds |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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