Correlation Between Bank of America and CMCSA
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By analyzing existing cross correlation between Bank of America and CMCSA 2937 01 NOV 56, you can compare the effects of market volatilities on Bank of America and CMCSA 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 CMCSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and CMCSA.
Diversification Opportunities for Bank of America and CMCSA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and CMCSA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CMCSA 2937 01 NOV 56 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMCSA 2937 01 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 CMCSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMCSA 2937 01 has no effect on the direction of Bank of America i.e., Bank of America and CMCSA go up and down completely randomly.
Pair Corralation between Bank of America and CMCSA
Considering the 90-day investment horizon Bank of America is expected to under-perform the CMCSA. In addition to that, Bank of America is 1.22 times more volatile than CMCSA 2937 01 NOV 56. It trades about -0.01 of its total potential returns per unit of risk. CMCSA 2937 01 NOV 56 is currently generating about 0.03 per unit of volatility. If you would invest 6,203 in CMCSA 2937 01 NOV 56 on January 14, 2025 and sell it today you would earn a total of 375.00 from holding CMCSA 2937 01 NOV 56 or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.51% |
| Values | Daily Returns |
Bank of America vs. CMCSA 2937 01 NOV 56
Performance |
| Timeline |
| Bank of America |
| CMCSA 2937 01 |
Bank of America and CMCSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and CMCSA
The main advantage of trading using opposite Bank of America and CMCSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, CMCSA 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 CMCSA will offset losses from the drop in CMCSA'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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