Correlation Between Bank of America and RBC Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and RBC Global Technology, you can compare the effects of market volatilities on Bank of America and RBC Global 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 RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and RBC Global.
Diversification Opportunities for Bank of America and RBC Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and RBC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and RBC Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Technology 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 RBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Technology has no effect on the direction of Bank of America i.e., Bank of America and RBC Global go up and down completely randomly.
Pair Corralation between Bank of America and RBC Global
Considering the 90-day investment horizon Bank of America is expected to generate 1.67 times more return on investment than RBC Global. However, Bank of America is 1.67 times more volatile than RBC Global Technology. It trades about 0.22 of its potential returns per unit of risk. RBC Global Technology is currently generating about 0.14 per unit of risk. If you would invest 4,265 in Bank of America on August 25, 2024 and sell it today you would earn a total of 435.00 from holding Bank of America or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of America vs. RBC Global Technology
Performance |
| Timeline |
| Bank of America |
| RBC Global Technology |
Bank of America and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and RBC Global
The main advantage of trading using opposite Bank of America and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, RBC Global 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 RBC Global will offset losses from the drop in RBC Global'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 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |