Correlation Between Bank of America and BAYNGR
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By analyzing existing cross correlation between Bank of America and BAYNGR 4625 25 JUN 38, you can compare the effects of market volatilities on Bank of America and BAYNGR 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 BAYNGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and BAYNGR.
Diversification Opportunities for Bank of America and BAYNGR
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and BAYNGR is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BAYNGR 4625 25 JUN 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAYNGR 4625 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 BAYNGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAYNGR 4625 25 has no effect on the direction of Bank of America i.e., Bank of America and BAYNGR go up and down completely randomly.
Pair Corralation between Bank of America and BAYNGR
Considering the 90-day investment horizon Bank of America is expected to generate 2.2 times more return on investment than BAYNGR. However, Bank of America is 2.2 times more volatile than BAYNGR 4625 25 JUN 38. It trades about 0.1 of its potential returns per unit of risk. BAYNGR 4625 25 JUN 38 is currently generating about 0.06 per unit of risk. If you would invest 3,938 in Bank of America on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Bank of America or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
Bank of America vs. BAYNGR 4625 25 JUN 38
Performance |
| Timeline |
| Bank of America |
| BAYNGR 4625 25 |
Bank of America and BAYNGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and BAYNGR
The main advantage of trading using opposite Bank of America and BAYNGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, BAYNGR 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 BAYNGR will offset losses from the drop in BAYNGR's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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