Correlation Between Bank of America and Flat Glass
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By analyzing existing cross correlation between Bank of America and Flat Glass Group, you can compare the effects of market volatilities on Bank of America and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Flat Glass.
Diversification Opportunities for Bank of America and Flat Glass
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Flat is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Bank of America i.e., Bank of America and Flat Glass go up and down completely randomly.
Pair Corralation between Bank of America and Flat Glass
Considering the 90-day investment horizon Bank of America is expected to generate 1.64 times less return on investment than Flat Glass. But when comparing it to its historical volatility, Bank of America is 2.76 times less risky than Flat Glass. It trades about 0.26 of its potential returns per unit of risk. Flat Glass Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,022 in Flat Glass Group on August 30, 2024 and sell it today you would earn a total of 538.00 from holding Flat Glass Group or generate 26.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.37% |
| Values | Daily Returns |
Bank of America vs. Flat Glass Group
Performance |
| Timeline |
| Bank of America |
| Flat Glass Group |
Bank of America and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Flat Glass
The main advantage of trading using opposite Bank of America and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' 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 |
| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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