Correlation Between Bank of America and Leverage Shares
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Leverage Shares 1x, you can compare the effects of market volatilities on Bank of America and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Leverage Shares.
Diversification Opportunities for Bank of America and Leverage Shares
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Leverage is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Leverage Shares 1x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 1x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 1x has no effect on the direction of Bank of America i.e., Bank of America and Leverage Shares go up and down completely randomly.
Pair Corralation between Bank of America and Leverage Shares
Considering the 90-day investment horizon Bank of America is expected to generate 0.36 times more return on investment than Leverage Shares. However, Bank of America is 2.74 times less risky than Leverage Shares. It trades about 0.14 of its potential returns per unit of risk. Leverage Shares 1x is currently generating about -0.13 per unit of risk. If you would invest 2,756 in Bank of America on September 1, 2024 and sell it today you would earn a total of 1,995 from holding Bank of America or generate 72.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.53% |
| Values | Daily Returns |
Bank of America vs. Leverage Shares 1x
Performance |
| Timeline |
| Bank of America |
| Leverage Shares 1x |
Bank of America and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Leverage Shares
The main advantage of trading using opposite Bank of America and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC | Leverage Shares vs. NMI Holdings | Leverage Shares vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |