Correlation Between Bank of America and Der International
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By analyzing existing cross correlation between Bank of America and Der International Home, you can compare the effects of market volatilities on Bank of America and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Der International.
Diversification Opportunities for Bank of America and Der International
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Der is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Bank of America i.e., Bank of America and Der International go up and down completely randomly.
Pair Corralation between Bank of America and Der International
Considering the 90-day investment horizon Bank of America is expected to generate 1.64 times less return on investment than Der International. But when comparing it to its historical volatility, Bank of America is 1.52 times less risky than Der International. It trades about 0.27 of its potential returns per unit of risk. Der International Home is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Der International Home on August 31, 2024 and sell it today you would earn a total of 87.00 from holding Der International Home or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of America vs. Der International Home
Performance |
| Timeline |
| Bank of America |
| Der International Home |
Bank of America and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Der International
The main advantage of trading using opposite Bank of America and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| Der International vs. Cultural Investment Holdings | Der International vs. Gome Telecom Equipment | Der International vs. Bus Online Co | Der International vs. Holitech Technology Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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