Correlation Between Bank of America and Zhejiang Yayi
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By analyzing existing cross correlation between Bank of America and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Bank of America and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Zhejiang Yayi.
Diversification Opportunities for Bank of America and Zhejiang Yayi
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Bank of America i.e., Bank of America and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Bank of America and Zhejiang Yayi
Considering the 90-day investment horizon Bank of America is expected to generate 0.79 times more return on investment than Zhejiang Yayi. However, Bank of America is 1.27 times less risky than Zhejiang Yayi. It trades about 0.31 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.14 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bank of America vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Bank of America |
| Zhejiang Yayi Metal |
Bank of America and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Zhejiang Yayi
The main advantage of trading using opposite Bank of America and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| Zhejiang Yayi vs. Fujian Nanwang Environment | Zhejiang Yayi vs. Panda Financial Holding | Zhejiang Yayi vs. Elite Color Environmental | Zhejiang Yayi vs. Jiangsu Financial Leasing |
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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