Correlation Between Bank of America and Compaa Minera
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By analyzing existing cross correlation between Bank of America and Compaa Minera Autln, you can compare the effects of market volatilities on Bank of America and Compaa Minera 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 Compaa Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Compaa Minera.
Diversification Opportunities for Bank of America and Compaa Minera
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Compaa is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Compaa Minera Autln in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compaa Minera Autln 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 Compaa Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compaa Minera Autln has no effect on the direction of Bank of America i.e., Bank of America and Compaa Minera go up and down completely randomly.
Pair Corralation between Bank of America and Compaa Minera
Considering the 90-day investment horizon Bank of America is expected to generate 0.7 times more return on investment than Compaa Minera. However, Bank of America is 1.42 times less risky than Compaa Minera. It trades about 0.12 of its potential returns per unit of risk. Compaa Minera Autln is currently generating about -0.03 per unit of risk. If you would invest 2,787 in Bank of America on August 29, 2024 and sell it today you would earn a total of 1,990 from holding Bank of America or generate 71.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
Bank of America vs. Compaa Minera Autln
Performance |
| Timeline |
| Bank of America |
| Compaa Minera Autln |
Bank of America and Compaa Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Compaa Minera
The main advantage of trading using opposite Bank of America and Compaa Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Compaa Minera 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 Compaa Minera will offset losses from the drop in Compaa Minera'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 |
| Compaa Minera vs. Enphase Energy, | Compaa Minera vs. The Home Depot | Compaa Minera vs. The Select Sector | Compaa Minera vs. Promotora y Operadora |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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