Correlation Between Bank of America and PYRAMID TECHNOPLAST
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By analyzing existing cross correlation between Bank of America and PYRAMID TECHNOPLAST ORD, you can compare the effects of market volatilities on Bank of America and PYRAMID TECHNOPLAST 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 PYRAMID TECHNOPLAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and PYRAMID TECHNOPLAST.
Diversification Opportunities for Bank of America and PYRAMID TECHNOPLAST
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and PYRAMID is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PYRAMID TECHNOPLAST ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PYRAMID TECHNOPLAST ORD 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 PYRAMID TECHNOPLAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PYRAMID TECHNOPLAST ORD has no effect on the direction of Bank of America i.e., Bank of America and PYRAMID TECHNOPLAST go up and down completely randomly.
Pair Corralation between Bank of America and PYRAMID TECHNOPLAST
Considering the 90-day investment horizon Bank of America is expected to generate 0.52 times more return on investment than PYRAMID TECHNOPLAST. However, Bank of America is 1.94 times less risky than PYRAMID TECHNOPLAST. It trades about 0.05 of its potential returns per unit of risk. PYRAMID TECHNOPLAST ORD is currently generating about 0.02 per unit of risk. If you would invest 3,337 in Bank of America on November 7, 2024 and sell it today you would earn a total of 1,334 from holding Bank of America or generate 39.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 71.6% |
| Values | Daily Returns |
Bank of America vs. PYRAMID TECHNOPLAST ORD
Performance |
| Timeline |
| Bank of America |
| PYRAMID TECHNOPLAST ORD |
Bank of America and PYRAMID TECHNOPLAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and PYRAMID TECHNOPLAST
The main advantage of trading using opposite Bank of America and PYRAMID TECHNOPLAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, PYRAMID TECHNOPLAST 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 PYRAMID TECHNOPLAST will offset losses from the drop in PYRAMID TECHNOPLAST's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Royal Bank of | Bank of America vs. Canadian Imperial Bank |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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