Correlation Between Bank of America and BPCEGP
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By analyzing existing cross correlation between Bank of America and BPCEGP 4875 01 APR 26, you can compare the effects of market volatilities on Bank of America and BPCEGP 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 BPCEGP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and BPCEGP.
Diversification Opportunities for Bank of America and BPCEGP
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and BPCEGP is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BPCEGP 4875 01 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 4875 01 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 BPCEGP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPCEGP 4875 01 has no effect on the direction of Bank of America i.e., Bank of America and BPCEGP go up and down completely randomly.
Pair Corralation between Bank of America and BPCEGP
Considering the 90-day investment horizon Bank of America is expected to under-perform the BPCEGP. In addition to that, Bank of America is 11.72 times more volatile than BPCEGP 4875 01 APR 26. It trades about -0.33 of its total potential returns per unit of risk. BPCEGP 4875 01 APR 26 is currently generating about 0.24 per unit of volatility. If you would invest 9,971 in BPCEGP 4875 01 APR 26 on November 29, 2024 and sell it today you would earn a total of 26.00 from holding BPCEGP 4875 01 APR 26 or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Bank of America vs. BPCEGP 4875 01 APR 26
Performance |
| Timeline |
| Bank of America |
| BPCEGP 4875 01 |
Bank of America and BPCEGP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and BPCEGP
The main advantage of trading using opposite Bank of America and BPCEGP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, BPCEGP 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 BPCEGP will offset losses from the drop in BPCEGP's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| BPCEGP vs. CVR Partners LP | BPCEGP vs. NL Industries | BPCEGP vs. Highway Holdings Limited | BPCEGP vs. Avient 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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