Correlation Between Bank of America and PF Atlantic
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By analyzing existing cross correlation between Bank of America and PF Atlantic Petroleum, you can compare the effects of market volatilities on Bank of America and PF Atlantic 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 PF Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and PF Atlantic.
Diversification Opportunities for Bank of America and PF Atlantic
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ATLA-DKK is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of Bank of America i.e., Bank of America and PF Atlantic go up and down completely randomly.
Pair Corralation between Bank of America and PF Atlantic
Considering the 90-day investment horizon Bank of America is expected to generate 0.45 times more return on investment than PF Atlantic. However, Bank of America is 2.21 times less risky than PF Atlantic. It trades about 0.11 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about -0.04 per unit of risk. If you would invest 3,949 in Bank of America on August 29, 2024 and sell it today you would earn a total of 826.00 from holding Bank of America or generate 20.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Bank of America vs. PF Atlantic Petroleum
Performance |
| Timeline |
| Bank of America |
| PF Atlantic Petroleum |
Bank of America and PF Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and PF Atlantic
The main advantage of trading using opposite Bank of America and PF Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, PF Atlantic 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 PF Atlantic will offset losses from the drop in PF Atlantic's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. Orphazyme AS | PF Atlantic vs. TORM plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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