Correlation Between Bank of America and Qingdao NovelBeam
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By analyzing existing cross correlation between Bank of America and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Bank of America and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Qingdao NovelBeam.
Diversification Opportunities for Bank of America and Qingdao NovelBeam
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Qingdao is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Bank of America i.e., Bank of America and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Bank of America and Qingdao NovelBeam
Considering the 90-day investment horizon Bank of America is expected to generate 0.47 times more return on investment than Qingdao NovelBeam. However, Bank of America is 2.11 times less risky than Qingdao NovelBeam. It trades about 0.26 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about 0.03 per unit of risk. If you would invest 3,968 in Bank of America on August 29, 2024 and sell it today you would earn a total of 817.50 from holding Bank of America or generate 20.6% 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. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Bank of America |
| Qingdao NovelBeam |
Bank of America and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Qingdao NovelBeam
The main advantage of trading using opposite Bank of America and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam'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. JPMorgan Chase Co |
| Qingdao NovelBeam vs. Industrial and Commercial | Qingdao NovelBeam vs. China Construction Bank | Qingdao NovelBeam vs. Agricultural Bank of | Qingdao NovelBeam 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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