Correlation Between Bank of America and YLZ Information
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By analyzing existing cross correlation between Bank of America and YLZ Information Tech, you can compare the effects of market volatilities on Bank of America and YLZ 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and YLZ Information.
Diversification Opportunities for Bank of America and YLZ Information
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and YLZ is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Bank of America i.e., Bank of America and YLZ Information go up and down completely randomly.
Pair Corralation between Bank of America and YLZ Information
Considering the 90-day investment horizon Bank of America is expected to generate 0.39 times more return on investment than YLZ Information. However, Bank of America is 2.59 times less risky than YLZ Information. It trades about 0.08 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.02 per unit of risk. If you would invest 2,660 in Bank of America on November 27, 2024 and sell it today you would earn a total of 1,786 from holding Bank of America or generate 67.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.39% |
| Values | Daily Returns |
Bank of America vs. YLZ Information Tech
Performance |
| Timeline |
| Bank of America |
| YLZ Information Tech |
Bank of America and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and YLZ Information
The main advantage of trading using opposite Bank of America and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, YLZ 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 YLZ Information will offset losses from the drop in YLZ Information'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. Royal Bank of |
| YLZ Information vs. Holitech Technology Co | YLZ Information vs. Gome Telecom Equipment | YLZ Information vs. Cultural Investment Holdings | YLZ Information vs. Danhua Chemical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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