Correlation Between Bank of America and NewWave EUR
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By analyzing existing cross correlation between Bank of America and NewWave EUR Currency, you can compare the effects of market volatilities on Bank of America and NewWave EUR 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 NewWave EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and NewWave EUR.
Diversification Opportunities for Bank of America and NewWave EUR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and NewWave is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and NewWave EUR Currency in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewWave EUR Currency 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 NewWave EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewWave EUR Currency has no effect on the direction of Bank of America i.e., Bank of America and NewWave EUR go up and down completely randomly.
Pair Corralation between Bank of America and NewWave EUR
Considering the 90-day investment horizon Bank of America is expected to generate 2.13 times more return on investment than NewWave EUR. However, Bank of America is 2.13 times more volatile than NewWave EUR Currency. It trades about 0.11 of its potential returns per unit of risk. NewWave EUR Currency is currently generating about -0.02 per unit of risk. If you would invest 2,648 in Bank of America on August 31, 2024 and sell it today you would earn a total of 2,129 from holding Bank of America or generate 80.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Bank of America vs. NewWave EUR Currency
Performance |
| Timeline |
| Bank of America |
| NewWave EUR Currency |
Bank of America and NewWave EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and NewWave EUR
The main advantage of trading using opposite Bank of America and NewWave EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, NewWave EUR 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 NewWave EUR will offset losses from the drop in NewWave EUR's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| NewWave EUR vs. NewWave Platinum Exchange | NewWave EUR vs. NewWave Silver Exchange | NewWave EUR vs. NewWave USD Currency | NewWave EUR vs. NewWave GBP Currency |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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