Correlation Between Bank of America and 06406RBL0
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and BK 5802 25 OCT 28, you can compare the effects of market volatilities on Bank of America and 06406RBL0 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 06406RBL0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 06406RBL0.
Diversification Opportunities for Bank of America and 06406RBL0
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 06406RBL0 is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BK 5802 25 OCT 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 5802 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 06406RBL0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 5802 25 has no effect on the direction of Bank of America i.e., Bank of America and 06406RBL0 go up and down completely randomly.
Pair Corralation between Bank of America and 06406RBL0
Considering the 90-day investment horizon Bank of America is expected to generate 6.96 times more return on investment than 06406RBL0. However, Bank of America is 6.96 times more volatile than BK 5802 25 OCT 28. It trades about 0.35 of its potential returns per unit of risk. BK 5802 25 OCT 28 is currently generating about -0.19 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 | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank of America vs. BK 5802 25 OCT 28
Performance |
| Timeline |
| Bank of America |
| BK 5802 25 |
Bank of America and 06406RBL0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 06406RBL0
The main advantage of trading using opposite Bank of America and 06406RBL0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 06406RBL0 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 06406RBL0 will offset losses from the drop in 06406RBL0'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 |
| 06406RBL0 vs. AEP TEX INC | 06406RBL0 vs. US BANK NATIONAL | 06406RBL0 vs. MetLife | 06406RBL0 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |