Correlation Between Bank of America and ASTRAZENECA
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By analyzing existing cross correlation between Bank of America and ASTRAZENECA PLC 645, you can compare the effects of market volatilities on Bank of America and ASTRAZENECA 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 ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ASTRAZENECA.
Diversification Opportunities for Bank of America and ASTRAZENECA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and ASTRAZENECA is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ASTRAZENECA PLC 645 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 645 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 ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC 645 has no effect on the direction of Bank of America i.e., Bank of America and ASTRAZENECA go up and down completely randomly.
Pair Corralation between Bank of America and ASTRAZENECA
Considering the 90-day investment horizon Bank of America is expected to generate 16.66 times less return on investment than ASTRAZENECA. But when comparing it to its historical volatility, Bank of America is 35.45 times less risky than ASTRAZENECA. It trades about 0.1 of its potential returns per unit of risk. ASTRAZENECA PLC 645 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,438 in ASTRAZENECA PLC 645 on August 31, 2024 and sell it today you would lose (118.00) from holding ASTRAZENECA PLC 645 or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.99% |
| Values | Daily Returns |
Bank of America vs. ASTRAZENECA PLC 645
Performance |
| Timeline |
| Bank of America |
| ASTRAZENECA PLC 645 |
Bank of America and ASTRAZENECA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ASTRAZENECA
The main advantage of trading using opposite Bank of America and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA'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 |
| ASTRAZENECA vs. AEP TEX INC | ASTRAZENECA vs. US BANK NATIONAL | ASTRAZENECA vs. Bank of America | ASTRAZENECA vs. GE Aerospace |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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