Correlation Between Bank of America and CORNING
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and CORNING INC 585, you can compare the effects of market volatilities on Bank of America and CORNING 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 CORNING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and CORNING.
Diversification Opportunities for Bank of America and CORNING
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and CORNING is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and CORNING INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNING INC 585 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 CORNING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNING INC 585 has no effect on the direction of Bank of America i.e., Bank of America and CORNING go up and down completely randomly.
Pair Corralation between Bank of America and CORNING
Considering the 90-day investment horizon Bank of America is expected to generate 0.95 times more return on investment than CORNING. However, Bank of America is 1.05 times less risky than CORNING. It trades about 0.32 of its potential returns per unit of risk. CORNING INC 585 is currently generating about 0.02 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Bank of America vs. CORNING INC 585
Performance |
| Timeline |
| Bank of America |
| CORNING INC 585 |
Bank of America and CORNING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and CORNING
The main advantage of trading using opposite Bank of America and CORNING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, CORNING 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 CORNING will offset losses from the drop in CORNING's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| CORNING vs. AEP TEX INC | CORNING vs. US BANK NATIONAL | CORNING vs. Bank of America | CORNING vs. GE Aerospace |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |