Correlation Between Bank of America and Beijing Wandong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Beijing Wandong Medical, you can compare the effects of market volatilities on Bank of America and Beijing Wandong 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 Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Beijing Wandong.
Diversification Opportunities for Bank of America and Beijing Wandong
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Bank of America i.e., Bank of America and Beijing Wandong go up and down completely randomly.
Pair Corralation between Bank of America and Beijing Wandong
Considering the 90-day investment horizon Bank of America is expected to generate 1.38 times less return on investment than Beijing Wandong. But when comparing it to its historical volatility, Bank of America is 1.61 times less risky than Beijing Wandong. It trades about 0.26 of its potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,497 in Beijing Wandong Medical on August 29, 2024 and sell it today you would earn a total of 246.00 from holding Beijing Wandong Medical or generate 16.43% 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. Beijing Wandong Medical
Performance |
| Timeline |
| Bank of America |
| Beijing Wandong Medical |
Bank of America and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Beijing Wandong
The main advantage of trading using opposite Bank of America and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong'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. JPMorgan Chase Co |
| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |