Correlation Between Bank of America and Jiugui Liquor
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By analyzing existing cross correlation between Bank of America and Jiugui Liquor Co, you can compare the effects of market volatilities on Bank of America and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Jiugui Liquor.
Diversification Opportunities for Bank of America and Jiugui Liquor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Jiugui is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Bank of America i.e., Bank of America and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Bank of America and Jiugui Liquor
Considering the 90-day investment horizon Bank of America is expected to generate 1.32 times less return on investment than Jiugui Liquor. But when comparing it to its historical volatility, Bank of America is 1.69 times less risky than Jiugui Liquor. It trades about 0.31 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,058 in Jiugui Liquor Co on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Jiugui Liquor Co or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. Jiugui Liquor Co
Performance |
| Timeline |
| Bank of America |
| Jiugui Liquor |
Bank of America and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Jiugui Liquor
The main advantage of trading using opposite Bank of America and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. JPMorgan Chase Co |
| Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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