Correlation Between Bank of America and Goodwill E
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By analyzing existing cross correlation between Bank of America and Goodwill E Health, you can compare the effects of market volatilities on Bank of America and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Goodwill E.
Diversification Opportunities for Bank of America and Goodwill E
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Goodwill is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Bank of America i.e., Bank of America and Goodwill E go up and down completely randomly.
Pair Corralation between Bank of America and Goodwill E
Considering the 90-day investment horizon Bank of America is expected to generate 0.38 times more return on investment than Goodwill E. However, Bank of America is 2.61 times less risky than Goodwill E. It trades about -0.03 of its potential returns per unit of risk. Goodwill E Health is currently generating about -0.18 per unit of risk. If you would invest 4,724 in Bank of America on October 26, 2024 and sell it today you would lose (72.00) from holding Bank of America or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.02% |
| Values | Daily Returns |
Bank of America vs. Goodwill E Health
Performance |
| Timeline |
| Bank of America |
| Goodwill E Health |
Bank of America and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Goodwill E
The main advantage of trading using opposite Bank of America and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| Goodwill E vs. Bank of China | Goodwill E vs. Kweichow Moutai Co | Goodwill E vs. PetroChina Co Ltd | Goodwill E vs. Bank of Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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