Correlation Between Bank of America and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Shaanxi Energy Investment, you can compare the effects of market volatilities on Bank of America and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Shaanxi Energy.
Diversification Opportunities for Bank of America and Shaanxi Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Shaanxi is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Bank of America i.e., Bank of America and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Bank of America and Shaanxi Energy
Considering the 90-day investment horizon Bank of America is expected to generate 0.78 times more return on investment than Shaanxi Energy. However, Bank of America is 1.29 times less risky than Shaanxi Energy. It trades about 0.05 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.03 per unit of risk. If you would invest 3,278 in Bank of America on August 25, 2024 and sell it today you would earn a total of 1,422 from holding Bank of America or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.48% |
| Values | Daily Returns |
Bank of America vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Bank of America |
| Shaanxi Energy Investment |
Bank of America and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Shaanxi Energy
The main advantage of trading using opposite Bank of America and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |