Correlation Between Bank of America and Zhongzhu Medical
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By analyzing existing cross correlation between Bank of America and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Bank of America and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Zhongzhu Medical.
Diversification Opportunities for Bank of America and Zhongzhu Medical
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Zhongzhu is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Bank of America i.e., Bank of America and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Bank of America and Zhongzhu Medical
Considering the 90-day investment horizon Bank of America is expected to generate 0.63 times more return on investment than Zhongzhu Medical. However, Bank of America is 1.6 times less risky than Zhongzhu Medical. It trades about 0.25 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.07 per unit of risk. If you would invest 4,395 in Bank of America on November 1, 2024 and sell it today you would earn a total of 272.50 from holding Bank of America or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Bank of America |
| Zhongzhu Medical Holdings |
Bank of America and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Zhongzhu Medical
The main advantage of trading using opposite Bank of America and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Canadian Imperial Bank |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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