Correlation Between Bank of America and Jiangsu Xinning
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By analyzing existing cross correlation between Bank of America and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Bank of America and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Jiangsu Xinning.
Diversification Opportunities for Bank of America and Jiangsu Xinning
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Bank of America i.e., Bank of America and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Bank of America and Jiangsu Xinning
Considering the 90-day investment horizon Bank of America is expected to generate 1.86 times less return on investment than Jiangsu Xinning. But when comparing it to its historical volatility, Bank of America is 2.18 times less risky than Jiangsu Xinning. It trades about 0.27 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Jiangsu Xinning Modern on August 29, 2024 and sell it today you would earn a total of 73.00 from holding Jiangsu Xinning Modern or generate 22.46% 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. Jiangsu Xinning Modern
Performance |
| Timeline |
| Bank of America |
| Jiangsu Xinning Modern |
Bank of America and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Jiangsu Xinning
The main advantage of trading using opposite Bank of America and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning'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 |
| Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. ZYF Lopsking Aluminum | Jiangsu Xinning vs. Sunny Loan Top | Jiangsu Xinning vs. Anhui Transport Consulting |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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