Correlation Between Bank of America and CHARTER
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By analyzing existing cross correlation between Bank of America and CHARTER MUNICATIONS OPER, you can compare the effects of market volatilities on Bank of America and CHARTER 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 CHARTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and CHARTER.
Diversification Opportunities for Bank of America and CHARTER
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and CHARTER is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CHARTER MUNICATIONS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHARTER MUNICATIONS OPER 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 CHARTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHARTER MUNICATIONS OPER has no effect on the direction of Bank of America i.e., Bank of America and CHARTER go up and down completely randomly.
Pair Corralation between Bank of America and CHARTER
Considering the 90-day investment horizon Bank of America is expected to generate 1.08 times more return on investment than CHARTER. However, Bank of America is 1.08 times more volatile than CHARTER MUNICATIONS OPER. It trades about 0.13 of its potential returns per unit of risk. CHARTER MUNICATIONS OPER is currently generating about 0.02 per unit of risk. If you would invest 2,990 in Bank of America on August 26, 2024 and sell it today you would earn a total of 1,710 from holding Bank of America or generate 57.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.58% |
| Values | Daily Returns |
Bank of America vs. CHARTER MUNICATIONS OPER
Performance |
| Timeline |
| Bank of America |
| CHARTER MUNICATIONS OPER |
Bank of America and CHARTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and CHARTER
The main advantage of trading using opposite Bank of America and CHARTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, CHARTER 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 CHARTER will offset losses from the drop in CHARTER's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| CHARTER vs. Air Lease | CHARTER vs. Westinghouse Air Brake | CHARTER vs. Marine Products | CHARTER vs. Mesa Air 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 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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