Correlation Between Bank of America and Prospect Logistics
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By analyzing existing cross correlation between Bank of America and Prospect Logistics and, you can compare the effects of market volatilities on Bank of America and Prospect Logistics 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 Prospect Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Prospect Logistics.
Diversification Opportunities for Bank of America and Prospect Logistics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Prospect is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Prospect Logistics and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospect Logistics and 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 Prospect Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospect Logistics and has no effect on the direction of Bank of America i.e., Bank of America and Prospect Logistics go up and down completely randomly.
Pair Corralation between Bank of America and Prospect Logistics
Considering the 90-day investment horizon Bank of America is expected to generate 2.88 times more return on investment than Prospect Logistics. However, Bank of America is 2.88 times more volatile than Prospect Logistics and. It trades about 0.31 of its potential returns per unit of risk. Prospect Logistics and is currently generating about 0.13 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bank of America vs. Prospect Logistics and
Performance |
| Timeline |
| Bank of America |
| Prospect Logistics and |
Bank of America and Prospect Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Prospect Logistics
The main advantage of trading using opposite Bank of America and Prospect Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Prospect Logistics 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 Prospect Logistics will offset losses from the drop in Prospect Logistics' long position.| Bank of America vs. Citigroup | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| Prospect Logistics vs. LH Shopping Centers | Prospect Logistics vs. HEMARAJ INDUSTRIAL PROPERTY | Prospect Logistics vs. Land and Houses |
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 Directory module to find actively traded commodities issued by global exchanges.
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