Correlation Between Grupo Elektra and Bank of America
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By analyzing existing cross correlation between Grupo Elektra SAB and Bank of America, you can compare the effects of market volatilities on Grupo Elektra 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 Grupo Elektra with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Elektra and Bank of America.
Diversification Opportunities for Grupo Elektra and Bank of America
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Bank is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Elektra SAB 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 Grupo Elektra 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 Grupo Elektra SAB 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 Grupo Elektra i.e., Grupo Elektra and Bank of America go up and down completely randomly.
Pair Corralation between Grupo Elektra and Bank of America
Assuming the 90 days trading horizon Grupo Elektra SAB is expected to under-perform the Bank of America. In addition to that, Grupo Elektra is 2.34 times more volatile than Bank of America. It trades about -0.03 of its total potential returns per unit of risk. Bank of America is currently generating about 0.05 per unit of volatility. If you would invest 61,042 in Bank of America on September 24, 2024 and sell it today you would earn a total of 27,431 from holding Bank of America or generate 44.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Elektra SAB vs. Bank of America
Performance |
Timeline |
Grupo Elektra SAB |
Bank of America |
Grupo Elektra and Bank of America Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Elektra and Bank of America
The main advantage of trading using opposite Grupo Elektra and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Elektra 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.Grupo Elektra vs. Samsung Electronics Co | Grupo Elektra vs. Taiwan Semiconductor Manufacturing | Grupo Elektra vs. JPMorgan Chase Co | Grupo Elektra vs. Bank of America |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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