Correlation Between Bank of America and Pricol
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Pricol Limited, you can compare the effects of market volatilities on Bank of America and Pricol 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 Pricol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Pricol.
Diversification Opportunities for Bank of America and Pricol
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Pricol is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Pricol Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pricol Limited 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 Pricol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pricol Limited has no effect on the direction of Bank of America i.e., Bank of America and Pricol go up and down completely randomly.
Pair Corralation between Bank of America and Pricol
Considering the 90-day investment horizon Bank of America is expected to generate 1.04 times more return on investment than Pricol. However, Bank of America is 1.04 times more volatile than Pricol Limited. It trades about 0.29 of its potential returns per unit of risk. Pricol Limited is currently generating about 0.14 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Pricol Limited
Performance |
| Timeline |
| Bank of America |
| Pricol Limited |
Bank of America and Pricol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Pricol
The main advantage of trading using opposite Bank of America and Pricol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Pricol 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 Pricol will offset losses from the drop in Pricol'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 |
| Pricol vs. Shree Pushkar Chemicals | Pricol vs. Newgen Software Technologies | Pricol vs. Associated Alcohols Breweries | Pricol vs. Allied Blenders Distillers |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |