Correlation Between Bank of America and 06406RBE6
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By analyzing existing cross correlation between Bank of America and BK 5166588 25 APR 25, you can compare the effects of market volatilities on Bank of America and 06406RBE6 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 06406RBE6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 06406RBE6.
Diversification Opportunities for Bank of America and 06406RBE6
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 06406RBE6 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BK 5166588 25 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 5166588 25 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 06406RBE6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 5166588 25 has no effect on the direction of Bank of America i.e., Bank of America and 06406RBE6 go up and down completely randomly.
Pair Corralation between Bank of America and 06406RBE6
Considering the 90-day investment horizon Bank of America is expected to generate 24.78 times more return on investment than 06406RBE6. However, Bank of America is 24.78 times more volatile than BK 5166588 25 APR 25. It trades about 0.35 of its potential returns per unit of risk. BK 5166588 25 APR 25 is currently generating about -0.09 per unit of risk. If you would invest 4,133 in Bank of America on September 3, 2024 and sell it today you would earn a total of 618.00 from holding Bank of America or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Bank of America vs. BK 5166588 25 APR 25
Performance |
| Timeline |
| Bank of America |
| BK 5166588 25 |
Bank of America and 06406RBE6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 06406RBE6
The main advantage of trading using opposite Bank of America and 06406RBE6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 06406RBE6 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 06406RBE6 will offset losses from the drop in 06406RBE6's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| 06406RBE6 vs. AEP TEX INC | 06406RBE6 vs. US BANK NATIONAL | 06406RBE6 vs. MetLife | 06406RBE6 vs. Brera Holdings PLC |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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