Correlation Between Bank of America and Zhuzhou Kibing
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By analyzing existing cross correlation between Bank of America and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Bank of America and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Zhuzhou Kibing.
Diversification Opportunities for Bank of America and Zhuzhou Kibing
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Zhuzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Bank of America i.e., Bank of America and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Bank of America and Zhuzhou Kibing
Considering the 90-day investment horizon Bank of America is expected to generate 0.64 times more return on investment than Zhuzhou Kibing. However, Bank of America is 1.56 times less risky than Zhuzhou Kibing. It trades about 0.1 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.05 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 Together |
| Strength | Significant |
| Accuracy | 95.5% |
| Values | Daily Returns |
Bank of America vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Bank of America |
| Zhuzhou Kibing Group |
Bank of America and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Zhuzhou Kibing
The main advantage of trading using opposite Bank of America and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing'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 |
| Zhuzhou Kibing vs. Hubei Xingfa Chemicals | Zhuzhou Kibing vs. Semiconductor Manufacturing Electronics | Zhuzhou Kibing vs. Epoxy Base Electronic | Zhuzhou Kibing vs. Bomin Electronics Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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