Correlation Between Bank of America and EnLink
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By analyzing existing cross correlation between Bank of America and EnLink Midstream Partners, you can compare the effects of market volatilities on Bank of America and EnLink 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 EnLink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and EnLink.
Diversification Opportunities for Bank of America and EnLink
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and EnLink is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EnLink Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnLink Midstream Partners 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 EnLink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnLink Midstream Partners has no effect on the direction of Bank of America i.e., Bank of America and EnLink go up and down completely randomly.
Pair Corralation between Bank of America and EnLink
Considering the 90-day investment horizon Bank of America is expected to generate 37.56 times less return on investment than EnLink. But when comparing it to its historical volatility, Bank of America is 53.21 times less risky than EnLink. It trades about 0.1 of its potential returns per unit of risk. EnLink Midstream Partners is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,144 in EnLink Midstream Partners on August 31, 2024 and sell it today you would lose (314.00) from holding EnLink Midstream Partners or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.03% |
| Values | Daily Returns |
Bank of America vs. EnLink Midstream Partners
Performance |
| Timeline |
| Bank of America |
| EnLink Midstream Partners |
Bank of America and EnLink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and EnLink
The main advantage of trading using opposite Bank of America and EnLink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, EnLink 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 EnLink will offset losses from the drop in EnLink's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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