Correlation Between Bank of America and COMCAST
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By analyzing existing cross correlation between Bank of America and COMCAST PORATION, you can compare the effects of market volatilities on Bank of America and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and COMCAST.
Diversification Opportunities for Bank of America and COMCAST
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and COMCAST is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and COMCAST PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST PORATION 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST PORATION has no effect on the direction of Bank of America i.e., Bank of America and COMCAST go up and down completely randomly.
Pair Corralation between Bank of America and COMCAST
Considering the 90-day investment horizon Bank of America is expected to generate 3.26 times more return on investment than COMCAST. However, Bank of America is 3.26 times more volatile than COMCAST PORATION. It trades about 0.27 of its potential returns per unit of risk. COMCAST PORATION is currently generating about -0.15 per unit of risk. If you would invest 4,253 in Bank of America on August 30, 2024 and sell it today you would earn a total of 524.00 from holding Bank of America or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. COMCAST PORATION
Performance |
| Timeline |
| Bank of America |
| COMCAST PORATION |
Bank of America and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and COMCAST
The main advantage of trading using opposite Bank of America and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| COMCAST vs. Udemy Inc | COMCAST vs. 17 Education Technology | COMCAST vs. Kura Sushi USA | COMCAST vs. Shake Shack |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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