Correlation Between Bank of America and La Comer
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By analyzing existing cross correlation between Bank of America and La Comer SAB, you can compare the effects of market volatilities on Bank of America and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and La Comer.
Diversification Opportunities for Bank of America and La Comer
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and LACOMERUBC is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer SAB 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Bank of America i.e., Bank of America and La Comer go up and down completely randomly.
Pair Corralation between Bank of America and La Comer
Assuming the 90 days trading horizon Bank of America is expected to generate 0.52 times more return on investment than La Comer. However, Bank of America is 1.92 times less risky than La Comer. It trades about 0.44 of its potential returns per unit of risk. La Comer SAB is currently generating about -0.14 per unit of risk. If you would invest 88,629 in Bank of America on October 20, 2024 and sell it today you would earn a total of 7,870 from holding Bank of America or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. La Comer SAB
Performance |
| Timeline |
| Bank of America |
| La Comer SAB |
Bank of America and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and La Comer
The main advantage of trading using opposite Bank of America and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.| Bank of America vs. Monster Beverage Corp | Bank of America vs. Verizon Communications | Bank of America vs. Micron Technology | Bank of America vs. New Oriental Education |
| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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