Correlation Between Bank of America and 02376WAA9
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By analyzing existing cross correlation between Bank of America and AAL 41 15 JAN 28, you can compare the effects of market volatilities on Bank of America and 02376WAA9 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 02376WAA9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 02376WAA9.
Diversification Opportunities for Bank of America and 02376WAA9
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 02376WAA9 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and AAL 41 15 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 41 15 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 02376WAA9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 41 15 has no effect on the direction of Bank of America i.e., Bank of America and 02376WAA9 go up and down completely randomly.
Pair Corralation between Bank of America and 02376WAA9
Considering the 90-day investment horizon Bank of America is expected to generate 0.89 times more return on investment than 02376WAA9. However, Bank of America is 1.13 times less risky than 02376WAA9. It trades about 0.1 of its potential returns per unit of risk. AAL 41 15 JAN 28 is currently generating about -0.03 per unit of risk. If you would invest 3,938 in Bank of America on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Bank of America or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.27% |
| Values | Daily Returns |
Bank of America vs. AAL 41 15 JAN 28
Performance |
| Timeline |
| Bank of America |
| AAL 41 15 |
Bank of America and 02376WAA9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 02376WAA9
The main advantage of trading using opposite Bank of America and 02376WAA9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 02376WAA9 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 02376WAA9 will offset losses from the drop in 02376WAA9's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| 02376WAA9 vs. SNDL Inc | 02376WAA9 vs. Diageo PLC ADR | 02376WAA9 vs. NETGEAR | 02376WAA9 vs. Diamond Estates Wines |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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