Correlation Between Bank of America and ShenZhen Yitoa
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By analyzing existing cross correlation between Bank of America and ShenZhen Yitoa Intelligent, you can compare the effects of market volatilities on Bank of America and ShenZhen Yitoa 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 ShenZhen Yitoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ShenZhen Yitoa.
Diversification Opportunities for Bank of America and ShenZhen Yitoa
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and ShenZhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ShenZhen Yitoa Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShenZhen Yitoa Intel 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 ShenZhen Yitoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShenZhen Yitoa Intel has no effect on the direction of Bank of America i.e., Bank of America and ShenZhen Yitoa go up and down completely randomly.
Pair Corralation between Bank of America and ShenZhen Yitoa
Considering the 90-day investment horizon Bank of America is expected to generate 1.31 times less return on investment than ShenZhen Yitoa. But when comparing it to its historical volatility, Bank of America is 1.95 times less risky than ShenZhen Yitoa. It trades about 0.27 of its potential returns per unit of risk. ShenZhen Yitoa Intelligent is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 754.00 in ShenZhen Yitoa Intelligent on August 29, 2024 and sell it today you would earn a total of 112.00 from holding ShenZhen Yitoa Intelligent or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. ShenZhen Yitoa Intelligent
Performance |
| Timeline |
| Bank of America |
| ShenZhen Yitoa Intel |
Bank of America and ShenZhen Yitoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ShenZhen Yitoa
The main advantage of trading using opposite Bank of America and ShenZhen Yitoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ShenZhen Yitoa 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 ShenZhen Yitoa will offset losses from the drop in ShenZhen Yitoa's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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