Correlation Between Bank of America and Fujian Nanwang
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By analyzing existing cross correlation between Bank of America and Fujian Nanwang Environment, you can compare the effects of market volatilities on Bank of America and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Fujian Nanwang.
Diversification Opportunities for Bank of America and Fujian Nanwang
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Fujian is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Bank of America i.e., Bank of America and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Bank of America and Fujian Nanwang
Considering the 90-day investment horizon Bank of America is expected to generate 0.42 times more return on investment than Fujian Nanwang. However, Bank of America is 2.4 times less risky than Fujian Nanwang. It trades about 0.26 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.24 per unit of risk. If you would invest 4,391 in Bank of America on October 29, 2024 and sell it today you would earn a total of 261.00 from holding Bank of America or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Bank of America vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Bank of America |
| Fujian Nanwang Envir |
Bank of America and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Fujian Nanwang
The main advantage of trading using opposite Bank of America and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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