Correlation Between Bank of America and Aramark
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By analyzing existing cross correlation between Bank of America and Aramark Services 5, you can compare the effects of market volatilities on Bank of America and Aramark 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 Aramark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Aramark.
Diversification Opportunities for Bank of America and Aramark
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Aramark is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Aramark Services 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aramark Services 5 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 Aramark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aramark Services 5 has no effect on the direction of Bank of America i.e., Bank of America and Aramark go up and down completely randomly.
Pair Corralation between Bank of America and Aramark
Considering the 90-day investment horizon Bank of America is expected to generate 4.11 times more return on investment than Aramark. However, Bank of America is 4.11 times more volatile than Aramark Services 5. It trades about 0.26 of its potential returns per unit of risk. Aramark Services 5 is currently generating about -0.28 per unit of risk. If you would invest 4,262 in Bank of America on August 27, 2024 and sell it today you would earn a total of 488.00 from holding Bank of America or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Bank of America vs. Aramark Services 5
Performance |
| Timeline |
| Bank of America |
| Aramark Services 5 |
Bank of America and Aramark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Aramark
The main advantage of trading using opposite Bank of America and Aramark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Aramark 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 Aramark will offset losses from the drop in Aramark'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 |
| Aramark vs. The Coca Cola | Aramark vs. JPMorgan Chase Co | Aramark vs. Dupont De Nemours | Aramark vs. Alcoa Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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