Correlation Between Bank of America and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both Bank of America and Bangchak Public at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of America and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Bangchak Public, you can compare the effects of market volatilities on Bank of America and Bangchak Public 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 Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Bangchak Public.
Diversification Opportunities for Bank of America and Bangchak Public
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Bangchak is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public 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 Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of Bank of America i.e., Bank of America and Bangchak Public go up and down completely randomly.
Pair Corralation between Bank of America and Bangchak Public
Considering the 90-day investment horizon Bank of America is expected to generate 0.77 times more return on investment than Bangchak Public. However, Bank of America is 1.3 times less risky than Bangchak Public. It trades about 0.05 of its potential returns per unit of risk. Bangchak Public is currently generating about 0.02 per unit of risk. If you would invest 3,278 in Bank of America on August 26, 2024 and sell it today you would earn a total of 1,422 from holding Bank of America or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.98% |
| Values | Daily Returns |
Bank of America vs. Bangchak Public
Performance |
| Timeline |
| Bank of America |
| Bangchak Public |
Bank of America and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Bangchak Public
The main advantage of trading using opposite Bank of America and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Bangchak Public 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Bangchak Public vs. PTT Oil and | Bangchak Public vs. Power Solution Technologies | Bangchak Public vs. Star Petroleum Refining | Bangchak Public vs. Prima Marine Public |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |