Correlation Between Bank of America and RBC Global
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By analyzing existing cross correlation between Bank of America and RBC Global Equity, 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
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and RBC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and RBC Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Equity 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 Equity 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 1.28 times less return on investment than RBC Global. In addition to that, Bank of America is 1.43 times more volatile than RBC Global Equity. It trades about 0.09 of its total potential returns per unit of risk. RBC Global Equity is currently generating about 0.16 per unit of volatility. If you would invest 2,545 in RBC Global Equity on November 5, 2024 and sell it today you would earn a total of 71.00 from holding RBC Global Equity or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank of America vs. RBC Global Equity
Performance |
| Timeline |
| Bank of America |
| RBC Global Equity |
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. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Royal Bank of | Bank of America vs. Canadian Imperial Bank |
| RBC Global vs. RBC mondial dnergie | RBC Global vs. RBC dactions mondiales | RBC Global vs. RBC European Mid Cap | RBC Global vs. RBC Global Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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