Correlation Between MAHLE Metal and Bank of America
Can any of the company-specific risk be diversified away by investing in both MAHLE Metal and Bank of America 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 MAHLE Metal and Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAHLE Metal Leve and Bank of America, you can compare the effects of market volatilities on MAHLE Metal 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 MAHLE Metal with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAHLE Metal and Bank of America.
Diversification Opportunities for MAHLE Metal and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAHLE and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAHLE Metal Leve 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 MAHLE Metal 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 MAHLE Metal Leve 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 MAHLE Metal i.e., MAHLE Metal and Bank of America go up and down completely randomly.
Pair Corralation between MAHLE Metal and Bank of America
If you would invest 0.00 in Bank of America on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Bank of America or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
MAHLE Metal Leve vs. Bank of America
Performance |
| Timeline |
| MAHLE Metal Leve |
| Bank of America |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
MAHLE Metal and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAHLE Metal and Bank of America
The main advantage of trading using opposite MAHLE Metal and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAHLE Metal 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.| MAHLE Metal vs. Tupy SA | MAHLE Metal vs. Engie Brasil Energia | MAHLE Metal vs. Grendene SA | MAHLE Metal vs. M Dias Branco |
| Bank of America vs. United Rentals | Bank of America vs. The Trade Desk | Bank of America vs. Hospital Mater Dei | Bank of America vs. Technos SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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