Correlation Between Bank of America and 110122DW5
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By analyzing existing cross correlation between Bank of America and BMY 37 15 MAR 52, you can compare the effects of market volatilities on Bank of America and 110122DW5 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 110122DW5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 110122DW5.
Diversification Opportunities for Bank of America and 110122DW5
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and 110122DW5 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and BMY 37 15 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMY 37 15 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 110122DW5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMY 37 15 has no effect on the direction of Bank of America i.e., Bank of America and 110122DW5 go up and down completely randomly.
Pair Corralation between Bank of America and 110122DW5
Considering the 90-day investment horizon Bank of America is expected to generate 1.16 times more return on investment than 110122DW5. However, Bank of America is 1.16 times more volatile than BMY 37 15 MAR 52. It trades about 0.26 of its potential returns per unit of risk. BMY 37 15 MAR 52 is currently generating about 0.17 per unit of risk. If you would invest 4,262 in Bank of America on August 28, 2024 and sell it today you would earn a total of 488.00 from holding Bank of America or generate 11.45% 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. BMY 37 15 MAR 52
Performance |
| Timeline |
| Bank of America |
| BMY 37 15 |
Bank of America and 110122DW5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 110122DW5
The main advantage of trading using opposite Bank of America and 110122DW5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 110122DW5 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 110122DW5 will offset losses from the drop in 110122DW5's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| 110122DW5 vs. AEP TEX INC | 110122DW5 vs. US BANK NATIONAL | 110122DW5 vs. 3M Company | 110122DW5 vs. Alcoa Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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