Correlation Between Bank of America and MGMCHI
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By analyzing existing cross correlation between Bank of America and MGMCHI 475 01 FEB 27, you can compare the effects of market volatilities on Bank of America and MGMCHI 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 MGMCHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and MGMCHI.
Diversification Opportunities for Bank of America and MGMCHI
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and MGMCHI is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and MGMCHI 475 01 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGMCHI 475 01 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 MGMCHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGMCHI 475 01 has no effect on the direction of Bank of America i.e., Bank of America and MGMCHI go up and down completely randomly.
Pair Corralation between Bank of America and MGMCHI
Considering the 90-day investment horizon Bank of America is expected to generate 1.17 times more return on investment than MGMCHI. However, Bank of America is 1.17 times more volatile than MGMCHI 475 01 FEB 27. It trades about 0.29 of its potential returns per unit of risk. MGMCHI 475 01 FEB 27 is currently generating about -0.29 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Bank of America vs. MGMCHI 475 01 FEB 27
Performance |
| Timeline |
| Bank of America |
| MGMCHI 475 01 |
Bank of America and MGMCHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and MGMCHI
The main advantage of trading using opposite Bank of America and MGMCHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, MGMCHI 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 MGMCHI will offset losses from the drop in MGMCHI'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 |
| MGMCHI vs. FitLife Brands, Common | MGMCHI vs. Bridgford Foods | MGMCHI vs. Nextnav Acquisition Corp | MGMCHI vs. Tyson Foods |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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