Correlation Between Bank of America and UBS Barclays
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By analyzing existing cross correlation between Bank of America and UBS Barclays Liquid, you can compare the effects of market volatilities on Bank of America and UBS Barclays 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 UBS Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and UBS Barclays.
Diversification Opportunities for Bank of America and UBS Barclays
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and UBS is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and UBS Barclays Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Barclays Liquid 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 UBS Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Barclays Liquid has no effect on the direction of Bank of America i.e., Bank of America and UBS Barclays go up and down completely randomly.
Pair Corralation between Bank of America and UBS Barclays
Considering the 90-day investment horizon Bank of America is expected to generate 4.35 times more return on investment than UBS Barclays. However, Bank of America is 4.35 times more volatile than UBS Barclays Liquid. It trades about 0.31 of its potential returns per unit of risk. UBS Barclays Liquid is currently generating about 0.42 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 | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. UBS Barclays Liquid
Performance |
| Timeline |
| Bank of America |
| UBS Barclays Liquid |
Bank of America and UBS Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and UBS Barclays
The main advantage of trading using opposite Bank of America and UBS Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, UBS Barclays 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 UBS Barclays will offset losses from the drop in UBS Barclays' long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| UBS Barclays vs. Xtrackers Nikkei 225 | UBS Barclays vs. iShares VII PLC | UBS Barclays vs. NMI Holdings | UBS Barclays 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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