Correlation Between Bank of America and 04010LAZ6
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By analyzing existing cross correlation between Bank of America and ARES CAPITAL PORATION, you can compare the effects of market volatilities on Bank of America and 04010LAZ6 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 04010LAZ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 04010LAZ6.
Diversification Opportunities for Bank of America and 04010LAZ6
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 04010LAZ6 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ARES CAPITAL PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARES CAPITAL PORATION 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 04010LAZ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARES CAPITAL PORATION has no effect on the direction of Bank of America i.e., Bank of America and 04010LAZ6 go up and down completely randomly.
Pair Corralation between Bank of America and 04010LAZ6
Considering the 90-day investment horizon Bank of America is expected to generate 1.82 times more return on investment than 04010LAZ6. However, Bank of America is 1.82 times more volatile than ARES CAPITAL PORATION. It trades about 0.29 of its potential returns per unit of risk. ARES CAPITAL PORATION is currently generating about -0.2 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. ARES CAPITAL PORATION
Performance |
| Timeline |
| Bank of America |
| ARES CAPITAL PORATION |
Bank of America and 04010LAZ6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 04010LAZ6
The main advantage of trading using opposite Bank of America and 04010LAZ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 04010LAZ6 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 04010LAZ6 will offset losses from the drop in 04010LAZ6'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 |
| 04010LAZ6 vs. WiMi Hologram Cloud | 04010LAZ6 vs. Stagwell | 04010LAZ6 vs. Fluent Inc | 04010LAZ6 vs. National CineMedia |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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