Correlation Between Bank of America and Imagicaaworld Entertainment
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By analyzing existing cross correlation between Bank of America and Imagicaaworld Entertainment Limited, you can compare the effects of market volatilities on Bank of America and Imagicaaworld Entertainment 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 Imagicaaworld Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Imagicaaworld Entertainment.
Diversification Opportunities for Bank of America and Imagicaaworld Entertainment
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Imagicaaworld is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Imagicaaworld Entertainment Li in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagicaaworld Entertainment 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 Imagicaaworld Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagicaaworld Entertainment has no effect on the direction of Bank of America i.e., Bank of America and Imagicaaworld Entertainment go up and down completely randomly.
Pair Corralation between Bank of America and Imagicaaworld Entertainment
Considering the 90-day investment horizon Bank of America is expected to generate 0.72 times more return on investment than Imagicaaworld Entertainment. However, Bank of America is 1.39 times less risky than Imagicaaworld Entertainment. It trades about 0.12 of its potential returns per unit of risk. Imagicaaworld Entertainment Limited is currently generating about -0.06 per unit of risk. If you would invest 4,166 in Bank of America on October 25, 2024 and sell it today you would earn a total of 473.00 from holding Bank of America or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Bank of America vs. Imagicaaworld Entertainment Li
Performance |
| Timeline |
| Bank of America |
| Imagicaaworld Entertainment |
Bank of America and Imagicaaworld Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Imagicaaworld Entertainment
The main advantage of trading using opposite Bank of America and Imagicaaworld Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Imagicaaworld Entertainment 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 Imagicaaworld Entertainment will offset losses from the drop in Imagicaaworld Entertainment's long position.| Bank of America vs. JPMorgan Chase Co | Bank of America vs. Bank of America | Bank of America vs. RLJ Lodging Trust | Bank of America vs. PennyMac Finl Svcs |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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