Correlation Between Bank of America and Guangzhou Jinyi
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By analyzing existing cross correlation between Bank of America and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Bank of America and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Guangzhou Jinyi.
Diversification Opportunities for Bank of America and Guangzhou Jinyi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Guangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Bank of America i.e., Bank of America and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Bank of America and Guangzhou Jinyi
Considering the 90-day investment horizon Bank of America is expected to generate 0.56 times more return on investment than Guangzhou Jinyi. However, Bank of America is 1.77 times less risky than Guangzhou Jinyi. It trades about 0.26 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.12 per unit of risk. If you would invest 4,262 in Bank of America on August 28, 2024 and sell it today you would earn a total of 488.00 from holding Bank of America or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Bank of America |
| Guangzhou Jinyi Media |
Bank of America and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Guangzhou Jinyi
The main advantage of trading using opposite Bank of America and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Industrial and Commercial | Guangzhou Jinyi vs. Bank of China | Guangzhou Jinyi vs. PetroChina Co Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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