Correlation Between Bank of America and BARRICK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and BARRICK PD AUSTRALIA, you can compare the effects of market volatilities on Bank of America and BARRICK 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 BARRICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and BARRICK.
Diversification Opportunities for Bank of America and BARRICK
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and BARRICK is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BARRICK PD AUSTRALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK PD AUSTRALIA 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 BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK PD AUSTRALIA has no effect on the direction of Bank of America i.e., Bank of America and BARRICK go up and down completely randomly.
Pair Corralation between Bank of America and BARRICK
Considering the 90-day investment horizon Bank of America is expected to generate 1.88 times more return on investment than BARRICK. However, Bank of America is 1.88 times more volatile than BARRICK PD AUSTRALIA. It trades about 0.29 of its potential returns per unit of risk. BARRICK PD AUSTRALIA is currently generating about -0.01 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank of America vs. BARRICK PD AUSTRALIA
Performance |
| Timeline |
| Bank of America |
| BARRICK PD AUSTRALIA |
Bank of America and BARRICK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and BARRICK
The main advantage of trading using opposite Bank of America and BARRICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, BARRICK 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 BARRICK will offset losses from the drop in BARRICK's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| BARRICK vs. PepsiCo | BARRICK vs. Treasury Wine Estates | BARRICK vs. Kura Sushi USA | BARRICK vs. Meli Hotels International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |