Correlation Between Bank of America and ASBBNK
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By analyzing existing cross correlation between Bank of America and ASBBNK 1625 22 OCT 26, you can compare the effects of market volatilities on Bank of America and ASBBNK 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 ASBBNK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ASBBNK.
Diversification Opportunities for Bank of America and ASBBNK
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and ASBBNK is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ASBBNK 1625 22 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASBBNK 1625 22 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 ASBBNK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASBBNK 1625 22 has no effect on the direction of Bank of America i.e., Bank of America and ASBBNK go up and down completely randomly.
Pair Corralation between Bank of America and ASBBNK
Considering the 90-day investment horizon Bank of America is expected to generate 1.39 times more return on investment than ASBBNK. However, Bank of America is 1.39 times more volatile than ASBBNK 1625 22 OCT 26. It trades about 0.17 of its potential returns per unit of risk. ASBBNK 1625 22 OCT 26 is currently generating about -0.15 per unit of risk. If you would invest 4,049 in Bank of America on August 30, 2024 and sell it today you would earn a total of 728.00 from holding Bank of America or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.25% |
| Values | Daily Returns |
Bank of America vs. ASBBNK 1625 22 OCT 26
Performance |
| Timeline |
| Bank of America |
| ASBBNK 1625 22 |
Bank of America and ASBBNK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ASBBNK
The main advantage of trading using opposite Bank of America and ASBBNK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ASBBNK 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 ASBBNK will offset losses from the drop in ASBBNK'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 |
| ASBBNK vs. FTAI Aviation Ltd | ASBBNK vs. HE Equipment Services | ASBBNK vs. Fevertree Drinks Plc | ASBBNK vs. Triton International Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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