Correlation Between Bank of America and Harbin Air
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By analyzing existing cross correlation between Bank of America and Harbin Air Conditioning, you can compare the effects of market volatilities on Bank of America and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Harbin Air.
Diversification Opportunities for Bank of America and Harbin Air
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Harbin is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Bank of America i.e., Bank of America and Harbin Air go up and down completely randomly.
Pair Corralation between Bank of America and Harbin Air
Considering the 90-day investment horizon Bank of America is expected to generate 0.53 times more return on investment than Harbin Air. However, Bank of America is 1.88 times less risky than Harbin Air. It trades about 0.05 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.0 per unit of risk. If you would invest 3,188 in Bank of America on November 21, 2024 and sell it today you would earn a total of 1,384 from holding Bank of America or generate 43.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Bank of America vs. Harbin Air Conditioning
Performance |
| Timeline |
| Bank of America |
| Harbin Air Conditioning |
Bank of America and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Harbin Air
The main advantage of trading using opposite Bank of America and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air'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. Royal Bank of |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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