Correlation Between Bank of America and 264399DK9
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By analyzing existing cross correlation between Bank of America and DUKE PWR LLC, you can compare the effects of market volatilities on Bank of America and 264399DK9 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 264399DK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 264399DK9.
Diversification Opportunities for Bank of America and 264399DK9
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and 264399DK9 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DUKE PWR LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE PWR LLC 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 264399DK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE PWR LLC has no effect on the direction of Bank of America i.e., Bank of America and 264399DK9 go up and down completely randomly.
Pair Corralation between Bank of America and 264399DK9
Considering the 90-day investment horizon Bank of America is expected to generate 1.37 times more return on investment than 264399DK9. However, Bank of America is 1.37 times more volatile than DUKE PWR LLC. It trades about 0.1 of its potential returns per unit of risk. DUKE PWR LLC is currently generating about 0.01 per unit of risk. If you would invest 4,608 in Bank of America on November 8, 2024 and sell it today you would earn a total of 103.00 from holding Bank of America or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank of America vs. DUKE PWR LLC
Performance |
| Timeline |
| Bank of America |
| DUKE PWR LLC |
Bank of America and 264399DK9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 264399DK9
The main advantage of trading using opposite Bank of America and 264399DK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 264399DK9 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 264399DK9 will offset losses from the drop in 264399DK9'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 |
| 264399DK9 vs. AEP TEX INC | 264399DK9 vs. US BANK NATIONAL | 264399DK9 vs. LightPath Technologies | 264399DK9 vs. Reliance Global Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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