Correlation Between Bank of America and Kinsus Interconnect
Can any of the company-specific risk be diversified away by investing in both Bank of America and Kinsus Interconnect at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of America and Kinsus Interconnect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Kinsus Interconnect Technology, you can compare the effects of market volatilities on Bank of America and Kinsus Interconnect 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 Kinsus Interconnect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Kinsus Interconnect.
Diversification Opportunities for Bank of America and Kinsus Interconnect
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Kinsus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Kinsus Interconnect Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinsus Interconnect 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 Kinsus Interconnect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinsus Interconnect has no effect on the direction of Bank of America i.e., Bank of America and Kinsus Interconnect go up and down completely randomly.
Pair Corralation between Bank of America and Kinsus Interconnect
Considering the 90-day investment horizon Bank of America is expected to generate 0.64 times more return on investment than Kinsus Interconnect. However, Bank of America is 1.57 times less risky than Kinsus Interconnect. It trades about 0.1 of its potential returns per unit of risk. Kinsus Interconnect Technology is currently generating about 0.0 per unit of risk. If you would invest 3,009 in Bank of America on August 26, 2024 and sell it today you would earn a total of 1,691 from holding Bank of America or generate 56.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.9% |
| Values | Daily Returns |
Bank of America vs. Kinsus Interconnect Technology
Performance |
| Timeline |
| Bank of America |
| Kinsus Interconnect |
Bank of America and Kinsus Interconnect Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Kinsus Interconnect
The main advantage of trading using opposite Bank of America and Kinsus Interconnect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Kinsus Interconnect 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 Kinsus Interconnect will offset losses from the drop in Kinsus Interconnect's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Kinsus Interconnect vs. Novatek Microelectronics Corp | Kinsus Interconnect vs. Quanta Computer | Kinsus Interconnect vs. United Microelectronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |