Correlation Between Bank of America and 15477CAA3
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and CDK 725 15 JUN 29, you can compare the effects of market volatilities on Bank of America and 15477CAA3 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 15477CAA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 15477CAA3.
Diversification Opportunities for Bank of America and 15477CAA3
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 15477CAA3 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CDK 725 15 JUN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDK 725 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 15477CAA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDK 725 15 has no effect on the direction of Bank of America i.e., Bank of America and 15477CAA3 go up and down completely randomly.
Pair Corralation between Bank of America and 15477CAA3
Considering the 90-day investment horizon Bank of America is expected to generate 5.24 times more return on investment than 15477CAA3. However, Bank of America is 5.24 times more volatile than CDK 725 15 JUN 29. It trades about 0.29 of its potential returns per unit of risk. CDK 725 15 JUN 29 is currently generating about -0.21 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank of America vs. CDK 725 15 JUN 29
Performance |
| Timeline |
| Bank of America |
| CDK 725 15 |
Bank of America and 15477CAA3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 15477CAA3
The main advantage of trading using opposite Bank of America and 15477CAA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 15477CAA3 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 15477CAA3 will offset losses from the drop in 15477CAA3'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 |
| 15477CAA3 vs. ATT Inc | 15477CAA3 vs. Home Depot | 15477CAA3 vs. Cisco Systems | 15477CAA3 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |