Correlation Between Bank of America and AVCON Information
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By analyzing existing cross correlation between Bank of America and AVCON Information Tech, you can compare the effects of market volatilities on Bank of America and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and AVCON Information.
Diversification Opportunities for Bank of America and AVCON Information
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and AVCON is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Bank of America i.e., Bank of America and AVCON Information go up and down completely randomly.
Pair Corralation between Bank of America and AVCON Information
Considering the 90-day investment horizon Bank of America is expected to generate 1.13 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Bank of America is 2.26 times less risky than AVCON Information. It trades about 0.05 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 422.00 in AVCON Information Tech on August 27, 2024 and sell it today you would earn a total of 50.00 from holding AVCON Information Tech or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.48% |
| Values | Daily Returns |
Bank of America vs. AVCON Information Tech
Performance |
| Timeline |
| Bank of America |
| AVCON Information Tech |
Bank of America and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and AVCON Information
The main advantage of trading using opposite Bank of America and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| AVCON Information vs. Shenzhen MYS Environmental | AVCON Information vs. AVIC Fund Management | AVCON Information vs. Shenzhen Bingchuan Network | AVCON Information vs. Penghua Shenzhen Energy |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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