Correlation Between Bank of America and 345370BT6
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By analyzing existing cross correlation between Bank of America and FORD MTR DEL, you can compare the effects of market volatilities on Bank of America and 345370BT6 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 345370BT6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 345370BT6.
Diversification Opportunities for Bank of America and 345370BT6
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 345370BT6 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and FORD MTR DEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORD MTR DEL 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 345370BT6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORD MTR DEL has no effect on the direction of Bank of America i.e., Bank of America and 345370BT6 go up and down completely randomly.
Pair Corralation between Bank of America and 345370BT6
Considering the 90-day investment horizon Bank of America is expected to generate 1.47 times more return on investment than 345370BT6. However, Bank of America is 1.47 times more volatile than FORD MTR DEL. It trades about 0.1 of its potential returns per unit of risk. FORD MTR DEL is currently generating about 0.01 per unit of risk. If you would invest 2,754 in Bank of America on August 27, 2024 and sell it today you would earn a total of 1,946 from holding Bank of America or generate 70.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.74% |
| Values | Daily Returns |
Bank of America vs. FORD MTR DEL
Performance |
| Timeline |
| Bank of America |
| FORD MTR DEL |
Bank of America and 345370BT6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 345370BT6
The main advantage of trading using opposite Bank of America and 345370BT6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 345370BT6 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 345370BT6 will offset losses from the drop in 345370BT6's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| 345370BT6 vs. BBB Foods | 345370BT6 vs. Genuine Parts Co | 345370BT6 vs. Willscot Mobile Mini | 345370BT6 vs. Vestis |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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