Correlation Between Bank of America and ENBRIDGE
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By analyzing existing cross correlation between Bank of America and ENBRIDGE INC 55, you can compare the effects of market volatilities on Bank of America and ENBRIDGE 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 ENBRIDGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ENBRIDGE.
Diversification Opportunities for Bank of America and ENBRIDGE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and ENBRIDGE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ENBRIDGE INC 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENBRIDGE INC 55 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 ENBRIDGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENBRIDGE INC 55 has no effect on the direction of Bank of America i.e., Bank of America and ENBRIDGE go up and down completely randomly.
Pair Corralation between Bank of America and ENBRIDGE
Considering the 90-day investment horizon Bank of America is expected to generate 1.09 times less return on investment than ENBRIDGE. In addition to that, Bank of America is 1.73 times more volatile than ENBRIDGE INC 55. It trades about 0.14 of its total potential returns per unit of risk. ENBRIDGE INC 55 is currently generating about 0.26 per unit of volatility. If you would invest 9,395 in ENBRIDGE INC 55 on November 9, 2024 and sell it today you would earn a total of 209.00 from holding ENBRIDGE INC 55 or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Bank of America vs. ENBRIDGE INC 55
Performance |
| Timeline |
| Bank of America |
| ENBRIDGE INC 55 |
Bank of America and ENBRIDGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ENBRIDGE
The main advantage of trading using opposite Bank of America and ENBRIDGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ENBRIDGE 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 ENBRIDGE will offset losses from the drop in ENBRIDGE'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 |
| ENBRIDGE vs. Artisan Partners Asset | ENBRIDGE vs. Paysafe | ENBRIDGE vs. Alvotech | ENBRIDGE vs. Asure Software |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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