Correlation Between Bank of America and 1248EPCB7
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By analyzing existing cross correlation between Bank of America and CCO Holdings 5375, you can compare the effects of market volatilities on Bank of America and 1248EPCB7 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 1248EPCB7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 1248EPCB7.
Diversification Opportunities for Bank of America and 1248EPCB7
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 1248EPCB7 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CCO Holdings 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCO Holdings 5375 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 1248EPCB7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCO Holdings 5375 has no effect on the direction of Bank of America i.e., Bank of America and 1248EPCB7 go up and down completely randomly.
Pair Corralation between Bank of America and 1248EPCB7
Considering the 90-day investment horizon Bank of America is expected to generate 2.75 times more return on investment than 1248EPCB7. However, Bank of America is 2.75 times more volatile than CCO Holdings 5375. It trades about 0.27 of its potential returns per unit of risk. CCO Holdings 5375 is currently generating about -0.09 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 513.00 from holding Bank of America or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. CCO Holdings 5375
Performance |
| Timeline |
| Bank of America |
| CCO Holdings 5375 |
Bank of America and 1248EPCB7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 1248EPCB7
The main advantage of trading using opposite Bank of America and 1248EPCB7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 1248EPCB7 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 1248EPCB7 will offset losses from the drop in 1248EPCB7's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| 1248EPCB7 vs. Keurig Dr Pepper | 1248EPCB7 vs. Japan Tobacco ADR | 1248EPCB7 vs. Turning Point Brands | 1248EPCB7 vs. Scandinavian Tobacco Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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