Correlation Between Bank of America and ACTIVISION
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By analyzing existing cross correlation between Bank of America and ACTIVISION BLIZZARD INC, you can compare the effects of market volatilities on Bank of America and ACTIVISION 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 ACTIVISION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ACTIVISION.
Diversification Opportunities for Bank of America and ACTIVISION
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and ACTIVISION is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ACTIVISION BLIZZARD INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTIVISION BLIZZARD INC 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 ACTIVISION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTIVISION BLIZZARD INC has no effect on the direction of Bank of America i.e., Bank of America and ACTIVISION go up and down completely randomly.
Pair Corralation between Bank of America and ACTIVISION
Considering the 90-day investment horizon Bank of America is expected to generate 1.35 times less return on investment than ACTIVISION. But when comparing it to its historical volatility, Bank of America is 1.52 times less risky than ACTIVISION. It trades about 0.26 of its potential returns per unit of risk. ACTIVISION BLIZZARD INC is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 5,237 in ACTIVISION BLIZZARD INC on August 27, 2024 and sell it today you would earn a total of 638.00 from holding ACTIVISION BLIZZARD INC or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Bank of America vs. ACTIVISION BLIZZARD INC
Performance |
| Timeline |
| Bank of America |
| ACTIVISION BLIZZARD INC |
Bank of America and ACTIVISION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ACTIVISION
The main advantage of trading using opposite Bank of America and ACTIVISION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ACTIVISION 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 ACTIVISION will offset losses from the drop in ACTIVISION's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| ACTIVISION vs. Nomura Holdings ADR | ACTIVISION vs. Old Dominion Freight | ACTIVISION vs. Eastman Kodak Co | ACTIVISION vs. Small Cap Premium |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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