Correlation Between Bank of America and Jangho Group
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By analyzing existing cross correlation between Bank of America and Jangho Group Co, you can compare the effects of market volatilities on Bank of America and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Jangho Group.
Diversification Opportunities for Bank of America and Jangho Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Jangho is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of Bank of America i.e., Bank of America and Jangho Group go up and down completely randomly.
Pair Corralation between Bank of America and Jangho Group
Considering the 90-day investment horizon Bank of America is expected to generate 0.72 times more return on investment than Jangho Group. However, Bank of America is 1.39 times less risky than Jangho Group. It trades about 0.12 of its potential returns per unit of risk. Jangho Group Co is currently generating about 0.0 per unit of risk. If you would invest 3,722 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,029 from holding Bank of America or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.95% |
| Values | Daily Returns |
Bank of America vs. Jangho Group Co
Performance |
| Timeline |
| Bank of America |
| Jangho Group |
Bank of America and Jangho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Jangho Group
The main advantage of trading using opposite Bank of America and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| Jangho Group vs. BTG Hotels Group | Jangho Group vs. Tsingtao Brewery Co | Jangho Group vs. Jonjee Hi tech Industrial | Jangho Group vs. Juneyao Airlines |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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