Correlation Between Bank of America and Compania Minera
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By analyzing existing cross correlation between Bank of America and Compania Minera Poderosa, you can compare the effects of market volatilities on Bank of America and Compania Minera 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 Bank of America with a short position of Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Compania Minera.
Diversification Opportunities for Bank of America and Compania Minera
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Compania is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Compania Minera Poderosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Poderosa and Bank of America 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 Bank of America are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Poderosa has no effect on the direction of Bank of America i.e., Bank of America and Compania Minera go up and down completely randomly.
Pair Corralation between Bank of America and Compania Minera
Assuming the 90 days trading horizon Bank of America is expected to generate 1.18 times more return on investment than Compania Minera. However, Bank of America is 1.18 times more volatile than Compania Minera Poderosa. It trades about 0.05 of its potential returns per unit of risk. Compania Minera Poderosa is currently generating about 0.0 per unit of risk. If you would invest 3,418 in Bank of America on September 14, 2024 and sell it today you would earn a total of 1,148 from holding Bank of America or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.09% |
| Values | Daily Returns |
Bank of America vs. Compania Minera Poderosa
Performance |
| Timeline |
| Bank of America |
| Compania Minera Poderosa |
Bank of America and Compania Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Compania Minera
The main advantage of trading using opposite Bank of America and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Compania Minera 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 Compania Minera will offset losses from the drop in Compania Minera's long position.| Bank of America vs. Nexa Resources Peru | Bank of America vs. Citigroup | Bank of America vs. Compania de Minas | Bank of America vs. Compania Minera Poderosa |
| Compania Minera vs. Corporacion Aceros Arequipa | Compania Minera vs. Bank of America | Compania Minera vs. Intel | Compania Minera vs. Citigroup |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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