Correlation Between Mutual Of and Bats Series
Can any of the company-specific risk be diversified away by investing in both Mutual Of and Bats Series 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 Mutual Of and Bats Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Bats Series C, you can compare the effects of market volatilities on Mutual Of and Bats Series 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 Mutual Of with a short position of Bats Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Bats Series.
Diversification Opportunities for Mutual Of and Bats Series
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mutual and Bats is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Bats Series C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bats Series C and Mutual Of 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 Mutual Of America are associated (or correlated) with Bats Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bats Series C has no effect on the direction of Mutual Of i.e., Mutual Of and Bats Series go up and down completely randomly.
Pair Corralation between Mutual Of and Bats Series
Assuming the 90 days horizon Mutual Of America is expected to generate 2.84 times more return on investment than Bats Series. However, Mutual Of is 2.84 times more volatile than Bats Series C. It trades about 0.05 of its potential returns per unit of risk. Bats Series C is currently generating about 0.07 per unit of risk. If you would invest 1,354 in Mutual Of America on September 12, 2024 and sell it today you would earn a total of 262.00 from holding Mutual Of America or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Mutual Of America vs. Bats Series C
Performance |
| Timeline |
| Mutual Of America |
| Bats Series C |
Mutual Of and Bats Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Bats Series
The main advantage of trading using opposite Mutual Of and Bats Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, Bats Series 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 Bats Series will offset losses from the drop in Bats Series' long position.| Mutual Of vs. Blackrock Inflation Protected | Mutual Of vs. American Funds Inflation | Mutual Of vs. Atac Inflation Rotation | Mutual Of vs. Ab Bond Inflation |
| Bats Series vs. Ab Small Cap | Bats Series vs. Touchstone Small Cap | Bats Series vs. Mutual Of America | Bats Series vs. Scout Small Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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