Correlation Between Bank of America and Guosheng Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Guosheng Financial Holding, you can compare the effects of market volatilities on Bank of America and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Guosheng Financial.
Diversification Opportunities for Bank of America and Guosheng Financial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Guosheng is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Bank of America i.e., Bank of America and Guosheng Financial go up and down completely randomly.
Pair Corralation between Bank of America and Guosheng Financial
Considering the 90-day investment horizon Bank of America is expected to generate 0.43 times more return on investment than Guosheng Financial. However, Bank of America is 2.35 times less risky than Guosheng Financial. It trades about 0.13 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.03 per unit of risk. If you would invest 3,290 in Bank of America on August 29, 2024 and sell it today you would earn a total of 1,496 from holding Bank of America or generate 45.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.78% |
| Values | Daily Returns |
Bank of America vs. Guosheng Financial Holding
Performance |
| Timeline |
| Bank of America |
| Guosheng Financial |
Bank of America and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Guosheng Financial
The main advantage of trading using opposite Bank of America and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. JPMorgan Chase Co |
| Guosheng Financial vs. PetroChina Co Ltd | Guosheng Financial vs. China State Construction | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Industrial and Commercial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |