Correlation Between Bank of America and 06417XAL5
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By analyzing existing cross correlation between Bank of America and BNS 525 06 DEC 24, you can compare the effects of market volatilities on Bank of America and 06417XAL5 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 06417XAL5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 06417XAL5.
Diversification Opportunities for Bank of America and 06417XAL5
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and 06417XAL5 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BNS 525 06 DEC 24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNS 525 06 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 06417XAL5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNS 525 06 has no effect on the direction of Bank of America i.e., Bank of America and 06417XAL5 go up and down completely randomly.
Pair Corralation between Bank of America and 06417XAL5
Considering the 90-day investment horizon Bank of America is expected to generate 9.03 times more return on investment than 06417XAL5. However, Bank of America is 9.03 times more volatile than BNS 525 06 DEC 24. It trades about 0.05 of its potential returns per unit of risk. BNS 525 06 DEC 24 is currently generating about 0.0 per unit of risk. If you would invest 3,278 in Bank of America on August 26, 2024 and sell it today you would earn a total of 1,422 from holding Bank of America or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.98% |
| Values | Daily Returns |
Bank of America vs. BNS 525 06 DEC 24
Performance |
| Timeline |
| Bank of America |
| BNS 525 06 |
Bank of America and 06417XAL5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 06417XAL5
The main advantage of trading using opposite Bank of America and 06417XAL5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 06417XAL5 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 06417XAL5 will offset losses from the drop in 06417XAL5's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| 06417XAL5 vs. Yuexiu Transport Infrastructure | 06417XAL5 vs. Capital Clean Energy | 06417XAL5 vs. East Africa Metals | 06417XAL5 vs. Air Lease |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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