Correlation Between Sociedad Minera and Bank of America
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By analyzing existing cross correlation between Sociedad Minera el and Bank of America, you can compare the effects of market volatilities on Sociedad Minera and Bank of America 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 Sociedad Minera with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Minera and Bank of America.
Diversification Opportunities for Sociedad Minera and Bank of America
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sociedad and Bank is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Minera el and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America and Sociedad Minera 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 Sociedad Minera el are associated (or correlated) with Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Sociedad Minera i.e., Sociedad Minera and Bank of America go up and down completely randomly.
Pair Corralation between Sociedad Minera and Bank of America
Assuming the 90 days trading horizon Sociedad Minera el is expected to generate 1.02 times more return on investment than Bank of America. However, Sociedad Minera is 1.02 times more volatile than Bank of America. It trades about -0.24 of its potential returns per unit of risk. Bank of America is currently generating about -0.3 per unit of risk. If you would invest 1,000.00 in Sociedad Minera el on November 28, 2024 and sell it today you would lose (30.00) from holding Sociedad Minera el or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Sociedad Minera el vs. Bank of America
Performance |
| Timeline |
| Sociedad Minera el |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Bank of America |
Sociedad Minera and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Minera and Bank of America
The main advantage of trading using opposite Sociedad Minera and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Minera position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| Sociedad Minera vs. InRetail Peru Corp | Sociedad Minera vs. Southern Copper Corp | Sociedad Minera vs. Bank of America | Sociedad Minera vs. Banco de Credito |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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