Correlation Between Bank of America and EQUINIX
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By analyzing existing cross correlation between Bank of America and EQUINIX INC, you can compare the effects of market volatilities on Bank of America and EQUINIX 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 EQUINIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and EQUINIX.
Diversification Opportunities for Bank of America and EQUINIX
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and EQUINIX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EQUINIX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINIX 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 EQUINIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINIX INC has no effect on the direction of Bank of America i.e., Bank of America and EQUINIX go up and down completely randomly.
Pair Corralation between Bank of America and EQUINIX
Considering the 90-day investment horizon Bank of America is expected to generate 3.01 times more return on investment than EQUINIX. However, Bank of America is 3.01 times more volatile than EQUINIX INC. It trades about 0.29 of its potential returns per unit of risk. EQUINIX INC is currently generating about -0.4 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Bank of America vs. EQUINIX INC
Performance |
| Timeline |
| Bank of America |
| EQUINIX INC |
Bank of America and EQUINIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and EQUINIX
The main advantage of trading using opposite Bank of America and EQUINIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, EQUINIX 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 EQUINIX will offset losses from the drop in EQUINIX'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 |
| EQUINIX vs. AEP TEX INC | EQUINIX vs. US BANK NATIONAL | EQUINIX vs. Bank of America | EQUINIX vs. GE Aerospace |
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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