Correlation Between Bank of America and Bajaj Finance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Bajaj Finance Limited, you can compare the effects of market volatilities on Bank of America and Bajaj Finance 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 Bajaj Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Bajaj Finance.
Diversification Opportunities for Bank of America and Bajaj Finance
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Bajaj is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Bajaj Finance Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Finance Limited 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 Bajaj Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Finance Limited has no effect on the direction of Bank of America i.e., Bank of America and Bajaj Finance go up and down completely randomly.
Pair Corralation between Bank of America and Bajaj Finance
Considering the 90-day investment horizon Bank of America is expected to generate 1.52 times more return on investment than Bajaj Finance. However, Bank of America is 1.52 times more volatile than Bajaj Finance Limited. It trades about 0.27 of its potential returns per unit of risk. Bajaj Finance Limited is currently generating about -0.15 per unit of risk. If you would invest 4,262 in Bank of America on August 29, 2024 and sell it today you would earn a total of 513.00 from holding Bank of America or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. Bajaj Finance Limited
Performance |
| Timeline |
| Bank of America |
| Bajaj Finance Limited |
Bank of America and Bajaj Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Bajaj Finance
The main advantage of trading using opposite Bank of America and Bajaj Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Bajaj Finance 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 Bajaj Finance will offset losses from the drop in Bajaj Finance's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| Bajaj Finance vs. California Software | Bajaj Finance vs. POWERGRID Infrastructure Investment | Bajaj Finance vs. Indian Metals Ferro | Bajaj Finance vs. Dhunseri Investments Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |