Correlation Between Bank of America and DISNEY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and DISNEY WALT NEW, you can compare the effects of market volatilities on Bank of America and DISNEY 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 DISNEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and DISNEY.
Diversification Opportunities for Bank of America and DISNEY
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and DISNEY is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DISNEY WALT NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISNEY WALT NEW 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 DISNEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISNEY WALT NEW has no effect on the direction of Bank of America i.e., Bank of America and DISNEY go up and down completely randomly.
Pair Corralation between Bank of America and DISNEY
Considering the 90-day investment horizon Bank of America is expected to generate 7.31 times more return on investment than DISNEY. However, Bank of America is 7.31 times more volatile than DISNEY WALT NEW. It trades about 0.24 of its potential returns per unit of risk. DISNEY WALT NEW is currently generating about 0.06 per unit of risk. If you would invest 4,262 in Bank of America on August 27, 2024 and sell it today you would earn a total of 438.00 from holding Bank of America or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. DISNEY WALT NEW
Performance |
| Timeline |
| Bank of America |
| DISNEY WALT NEW |
Bank of America and DISNEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and DISNEY
The main advantage of trading using opposite Bank of America and DISNEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, DISNEY 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 DISNEY will offset losses from the drop in DISNEY's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |