Correlation Between Bank of America and 15089QAP9
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By analyzing existing cross correlation between Bank of America and CE 6379 15 JUL 32, you can compare the effects of market volatilities on Bank of America and 15089QAP9 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 15089QAP9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 15089QAP9.
Diversification Opportunities for Bank of America and 15089QAP9
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 15089QAP9 is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CE 6379 15 JUL 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CE 6379 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 15089QAP9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CE 6379 15 has no effect on the direction of Bank of America i.e., Bank of America and 15089QAP9 go up and down completely randomly.
Pair Corralation between Bank of America and 15089QAP9
Considering the 90-day investment horizon Bank of America is expected to generate 1.8 times more return on investment than 15089QAP9. However, Bank of America is 1.8 times more volatile than CE 6379 15 JUL 32. It trades about 0.06 of its potential returns per unit of risk. CE 6379 15 JUL 32 is currently generating about 0.02 per unit of risk. If you would invest 3,223 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,528 from holding Bank of America or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.23% |
| Values | Daily Returns |
Bank of America vs. CE 6379 15 JUL 32
Performance |
| Timeline |
| Bank of America |
| CE 6379 15 |
Bank of America and 15089QAP9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 15089QAP9
The main advantage of trading using opposite Bank of America and 15089QAP9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 15089QAP9 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 15089QAP9 will offset losses from the drop in 15089QAP9'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 |
| 15089QAP9 vs. ATT Inc | 15089QAP9 vs. Home Depot | 15089QAP9 vs. Cisco Systems | 15089QAP9 vs. Dupont De Nemours |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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