Correlation Between Bank of America and AMAZONCOM
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By analyzing existing cross correlation between Bank of America and AMAZONCOM INC, you can compare the effects of market volatilities on Bank of America and AMAZONCOM 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 AMAZONCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and AMAZONCOM.
Diversification Opportunities for Bank of America and AMAZONCOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and AMAZONCOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and AMAZONCOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZONCOM 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 AMAZONCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZONCOM INC has no effect on the direction of Bank of America i.e., Bank of America and AMAZONCOM go up and down completely randomly.
Pair Corralation between Bank of America and AMAZONCOM
If you would invest 4,608 in Bank of America on November 8, 2024 and sell it today you would earn a total of 166.00 from holding Bank of America or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank of America vs. AMAZONCOM INC
Performance |
| Timeline |
| Bank of America |
| AMAZONCOM INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and AMAZONCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and AMAZONCOM
The main advantage of trading using opposite Bank of America and AMAZONCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, AMAZONCOM 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 AMAZONCOM will offset losses from the drop in AMAZONCOM's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Canadian Imperial Bank | Bank of America vs. Bank of Montreal |
| AMAZONCOM vs. CVW CleanTech | AMAZONCOM vs. Columbia Sportswear | AMAZONCOM vs. Cleantech Power Corp | AMAZONCOM vs. Victorias Secret Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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