Correlation Between Bayerische Motoren and Faraday Future
Can any of the company-specific risk be diversified away by investing in both Bayerische Motoren and Faraday Future at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bayerische Motoren and Faraday Future into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayerische Motoren Werke and Faraday Future Intelligent, you can compare the effects of market volatilities on Bayerische Motoren and Faraday Future 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 Bayerische Motoren with a short position of Faraday Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayerische Motoren and Faraday Future.
Diversification Opportunities for Bayerische Motoren and Faraday Future
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bayerische and Faraday is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bayerische Motoren Werke and Faraday Future Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Faraday Future Intel and Bayerische Motoren 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 Bayerische Motoren Werke are associated (or correlated) with Faraday Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Faraday Future Intel has no effect on the direction of Bayerische Motoren i.e., Bayerische Motoren and Faraday Future go up and down completely randomly.
Pair Corralation between Bayerische Motoren and Faraday Future
If you would invest 2.00 in Faraday Future Intelligent on October 21, 2024 and sell it today you would earn a total of 2.31 from holding Faraday Future Intelligent or generate 115.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bayerische Motoren Werke vs. Faraday Future Intelligent
Performance |
| Timeline |
| Bayerische Motoren Werke |
| Faraday Future Intel |
Bayerische Motoren and Faraday Future Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayerische Motoren and Faraday Future
The main advantage of trading using opposite Bayerische Motoren and Faraday Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayerische Motoren position performs unexpectedly, Faraday Future 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 Faraday Future will offset losses from the drop in Faraday Future's long position.| Bayerische Motoren vs. Honda Motor Co | Bayerische Motoren vs. Volkswagen AG VZO | Bayerische Motoren vs. Volkswagen AG | Bayerische Motoren vs. Bayerische Motoren Werke |
| Faraday Future vs. HYZON Motors | Faraday Future vs. NextNav Warrant | Faraday Future vs. Inspira Technologies Oxy | Faraday Future vs. AppTech Payments Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |