Correlation Between Bank of America and JS Global
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By analyzing existing cross correlation between Bank of America and JS Global Banking, you can compare the effects of market volatilities on Bank of America and JS Global 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 JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and JS Global.
Diversification Opportunities for Bank of America and JS Global
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and JSGBETF is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking 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 JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of Bank of America i.e., Bank of America and JS Global go up and down completely randomly.
Pair Corralation between Bank of America and JS Global
Considering the 90-day investment horizon Bank of America is expected to generate 0.38 times more return on investment than JS Global. However, Bank of America is 2.63 times less risky than JS Global. It trades about 0.15 of its potential returns per unit of risk. JS Global Banking is currently generating about -0.19 per unit of risk. If you would invest 4,608 in Bank of America on November 8, 2024 and sell it today you would earn a total of 166.00 from holding Bank of America or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. JS Global Banking
Performance |
| Timeline |
| Bank of America |
| JS Global Banking |
Bank of America and JS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and JS Global
The main advantage of trading using opposite Bank of America and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, JS Global 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 JS Global will offset losses from the drop in JS Global's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Canadian Imperial Bank | Bank of America vs. Bank of Montreal |
| JS Global vs. MCB Bank | JS Global vs. Pakistan Telecommunication | JS Global vs. Century Insurance | JS Global vs. Air Link Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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