Correlation Between Bank of America and CARRIER
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By analyzing existing cross correlation between Bank of America and CARRIER GLOBAL P, you can compare the effects of market volatilities on Bank of America and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and CARRIER.
Diversification Opportunities for Bank of America and CARRIER
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and CARRIER is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of Bank of America i.e., Bank of America and CARRIER go up and down completely randomly.
Pair Corralation between Bank of America and CARRIER
Considering the 90-day investment horizon Bank of America is expected to generate 2.01 times more return on investment than CARRIER. However, Bank of America is 2.01 times more volatile than CARRIER GLOBAL P. It trades about 0.13 of its potential returns per unit of risk. CARRIER GLOBAL P is currently generating about 0.03 per unit of risk. If you would invest 3,036 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,668 from holding Bank of America or generate 54.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bank of America vs. CARRIER GLOBAL P
Performance |
| Timeline |
| Bank of America |
| CARRIER GLOBAL P |
Bank of America and CARRIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and CARRIER
The main advantage of trading using opposite Bank of America and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| CARRIER vs. Senmiao Technology | CARRIER vs. Sphere Entertainment Co | CARRIER vs. WiMi Hologram Cloud | CARRIER vs. Casio Computer Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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