Correlation Between Bank of America and 26442CBJ2
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By analyzing existing cross correlation between Bank of America and DUK 495 15 JAN 33, you can compare the effects of market volatilities on Bank of America and 26442CBJ2 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 26442CBJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 26442CBJ2.
Diversification Opportunities for Bank of America and 26442CBJ2
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and 26442CBJ2 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DUK 495 15 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 495 15 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 26442CBJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 495 15 has no effect on the direction of Bank of America i.e., Bank of America and 26442CBJ2 go up and down completely randomly.
Pair Corralation between Bank of America and 26442CBJ2
Considering the 90-day investment horizon Bank of America is expected to under-perform the 26442CBJ2. In addition to that, Bank of America is 1.81 times more volatile than DUK 495 15 JAN 33. It trades about -0.34 of its total potential returns per unit of risk. DUK 495 15 JAN 33 is currently generating about 0.0 per unit of volatility. If you would invest 9,858 in DUK 495 15 JAN 33 on November 28, 2024 and sell it today you would earn a total of 1.00 from holding DUK 495 15 JAN 33 or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. DUK 495 15 JAN 33
Performance |
| Timeline |
| Bank of America |
| DUK 495 15 |
Bank of America and 26442CBJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 26442CBJ2
The main advantage of trading using opposite Bank of America and 26442CBJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 26442CBJ2 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 26442CBJ2 will offset losses from the drop in 26442CBJ2'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 |
| 26442CBJ2 vs. Major Drilling Group | 26442CBJ2 vs. Noble plc | 26442CBJ2 vs. Vantage Drilling International | 26442CBJ2 vs. Helmerich and Payne |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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