Correlation Between Bank of America and 26875PAN1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and EOG RES INC, you can compare the effects of market volatilities on Bank of America and 26875PAN1 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 26875PAN1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 26875PAN1.
Diversification Opportunities for Bank of America and 26875PAN1
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 26875PAN1 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EOG RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOG RES INC 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 26875PAN1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOG RES INC has no effect on the direction of Bank of America i.e., Bank of America and 26875PAN1 go up and down completely randomly.
Pair Corralation between Bank of America and 26875PAN1
Considering the 90-day investment horizon Bank of America is expected to generate 2.32 times more return on investment than 26875PAN1. However, Bank of America is 2.32 times more volatile than EOG RES INC. It trades about 0.16 of its potential returns per unit of risk. EOG RES INC is currently generating about 0.03 per unit of risk. If you would invest 4,044 in Bank of America on September 2, 2024 and sell it today you would earn a total of 707.00 from holding Bank of America or generate 17.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Bank of America vs. EOG RES INC
Performance |
| Timeline |
| Bank of America |
| EOG RES INC |
Bank of America and 26875PAN1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 26875PAN1
The main advantage of trading using opposite Bank of America and 26875PAN1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 26875PAN1 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 26875PAN1 will offset losses from the drop in 26875PAN1'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 |
| 26875PAN1 vs. Mesa Air Group | 26875PAN1 vs. Eldorado Gold Corp | 26875PAN1 vs. Grupo Aeroportuario del | 26875PAN1 vs. Sensient Technologies |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |