Correlation Between Bank of America and ECOPET
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By analyzing existing cross correlation between Bank of America and ECOPET 5875 02 NOV 51, you can compare the effects of market volatilities on Bank of America and ECOPET 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 ECOPET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ECOPET.
Diversification Opportunities for Bank of America and ECOPET
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ECOPET is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ECOPET 5875 02 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECOPET 5875 02 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 ECOPET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECOPET 5875 02 has no effect on the direction of Bank of America i.e., Bank of America and ECOPET go up and down completely randomly.
Pair Corralation between Bank of America and ECOPET
Considering the 90-day investment horizon Bank of America is expected to generate 1.04 times more return on investment than ECOPET. However, Bank of America is 1.04 times more volatile than ECOPET 5875 02 NOV 51. It trades about 0.27 of its potential returns per unit of risk. ECOPET 5875 02 NOV 51 is currently generating about -0.21 per unit of risk. If you would invest 4,262 in Bank of America on August 29, 2024 and sell it today you would earn a total of 523.50 from holding Bank of America or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bank of America vs. ECOPET 5875 02 NOV 51
Performance |
| Timeline |
| Bank of America |
| ECOPET 5875 02 |
Bank of America and ECOPET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ECOPET
The main advantage of trading using opposite Bank of America and ECOPET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ECOPET 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 ECOPET will offset losses from the drop in ECOPET'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. JPMorgan Chase Co |
| ECOPET vs. Acco Brands | ECOPET vs. Weyco Group | ECOPET vs. NL Industries | ECOPET vs. Franklin Wireless Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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