Correlation Between Bank of America and MQGAU
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By analyzing existing cross correlation between Bank of America and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Bank of America and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and MQGAU.
Diversification Opportunities for Bank of America and MQGAU
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and MQGAU is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Bank of America i.e., Bank of America and MQGAU go up and down completely randomly.
Pair Corralation between Bank of America and MQGAU
Considering the 90-day investment horizon Bank of America is expected to generate 14.61 times more return on investment than MQGAU. However, Bank of America is 14.61 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.06 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about -0.02 per unit of risk. If you would invest 4,561 in Bank of America on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Bank of America or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.82% |
| Values | Daily Returns |
Bank of America vs. MQGAU 5376057 23 SEP 27
Performance |
| Timeline |
| Bank of America |
| MQGAU 5376057 23 |
Bank of America and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and MQGAU
The main advantage of trading using opposite Bank of America and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| MQGAU vs. Univest Pennsylvania | MQGAU vs. LithiumBank Resources Corp | MQGAU vs. Bill Com Holdings | MQGAU vs. Encore Capital Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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