Correlation Between Bank of America and Cansino Biologics
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By analyzing existing cross correlation between Bank of America and Cansino Biologics, you can compare the effects of market volatilities on Bank of America and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Cansino Biologics.
Diversification Opportunities for Bank of America and Cansino Biologics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Cansino is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Bank of America i.e., Bank of America and Cansino Biologics go up and down completely randomly.
Pair Corralation between Bank of America and Cansino Biologics
Considering the 90-day investment horizon Bank of America is expected to generate 0.48 times more return on investment than Cansino Biologics. However, Bank of America is 2.07 times less risky than Cansino Biologics. It trades about 0.06 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.05 per unit of risk. If you would invest 3,138 in Bank of America on August 27, 2024 and sell it today you would earn a total of 1,562 from holding Bank of America or generate 49.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.17% |
| Values | Daily Returns |
Bank of America vs. Cansino Biologics
Performance |
| Timeline |
| Bank of America |
| Cansino Biologics |
Bank of America and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Cansino Biologics
The main advantage of trading using opposite Bank of America and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' 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 |
| Cansino Biologics vs. Industrial and Commercial | Cansino Biologics vs. Agricultural Bank of | Cansino Biologics vs. China Construction Bank | Cansino Biologics vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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