Correlation Between Bank of America and BPCEGP
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By analyzing existing cross correlation between Bank of America and BPCEGP 5748 19 JUL 33, 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
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and BPCEGP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BPCEGP 5748 19 JUL 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 5748 19 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 5748 19 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 generate 0.34 times more return on investment than BPCEGP. However, Bank of America is 2.96 times less risky than BPCEGP. It trades about 0.05 of its potential returns per unit of risk. BPCEGP 5748 19 JUL 33 is currently generating about -0.31 per unit of risk. If you would invest 4,653 in Bank of America on November 18, 2024 and sell it today you would earn a total of 43.00 from holding Bank of America or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Bank of America vs. BPCEGP 5748 19 JUL 33
Performance |
| Timeline |
| Bank of America |
| BPCEGP 5748 19 |
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. Monster Beverage Corp | BPCEGP vs. SmartStop Self Storage | BPCEGP vs. Nasdaq Inc | BPCEGP vs. CDW 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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