Correlation Between Bank of America and Jiangsu Pacific
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By analyzing existing cross correlation between Bank of America and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Bank of America and Jiangsu Pacific 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 Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Jiangsu Pacific.
Diversification Opportunities for Bank of America and Jiangsu Pacific
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Jiangsu is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Bank of America i.e., Bank of America and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Bank of America and Jiangsu Pacific
Considering the 90-day investment horizon Bank of America is expected to generate 0.46 times more return on investment than Jiangsu Pacific. However, Bank of America is 2.16 times less risky than Jiangsu Pacific. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.08 per unit of risk. If you would invest 3,099 in Bank of America on November 27, 2024 and sell it today you would earn a total of 1,347 from holding Bank of America or generate 43.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.35% |
| Values | Daily Returns |
Bank of America vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Bank of America |
| Jiangsu Pacific Quartz |
Bank of America and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Jiangsu Pacific
The main advantage of trading using opposite Bank of America and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific'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 |
| Jiangsu Pacific vs. Sanbo Hospital Management | Jiangsu Pacific vs. Rising Nonferrous Metals | Jiangsu Pacific vs. Yoantion Industrial IncLtd | Jiangsu Pacific vs. China Reform Health |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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