Correlation Between Bank of America and DTRGR
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By analyzing existing cross correlation between Bank of America and DTRGR 25 14 DEC 31, you can compare the effects of market volatilities on Bank of America and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and DTRGR.
Diversification Opportunities for Bank of America and DTRGR
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and DTRGR is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DTRGR 25 14 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 25 14 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 25 14 has no effect on the direction of Bank of America i.e., Bank of America and DTRGR go up and down completely randomly.
Pair Corralation between Bank of America and DTRGR
Considering the 90-day investment horizon Bank of America is expected to generate 2.59 times more return on investment than DTRGR. However, Bank of America is 2.59 times more volatile than DTRGR 25 14 DEC 31. It trades about 0.06 of its potential returns per unit of risk. DTRGR 25 14 DEC 31 is currently generating about 0.02 per unit of risk. If you would invest 3,278 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,426 from holding Bank of America or generate 43.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 53.05% |
| Values | Daily Returns |
Bank of America vs. DTRGR 25 14 DEC 31
Performance |
| Timeline |
| Bank of America |
| DTRGR 25 14 |
Bank of America and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and DTRGR
The main advantage of trading using opposite Bank of America and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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