Correlation Between Bank of America and 36262GAB7
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By analyzing existing cross correlation between Bank of America and GXO 165 15 JUL 26, you can compare the effects of market volatilities on Bank of America and 36262GAB7 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 36262GAB7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 36262GAB7.
Diversification Opportunities for Bank of America and 36262GAB7
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and 36262GAB7 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GXO 165 15 JUL 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO 165 15 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 36262GAB7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO 165 15 has no effect on the direction of Bank of America i.e., Bank of America and 36262GAB7 go up and down completely randomly.
Pair Corralation between Bank of America and 36262GAB7
Considering the 90-day investment horizon Bank of America is expected to generate 2.03 times more return on investment than 36262GAB7. However, Bank of America is 2.03 times more volatile than GXO 165 15 JUL 26. It trades about 0.06 of its potential returns per unit of risk. GXO 165 15 JUL 26 is currently generating about 0.03 per unit of risk. If you would invest 3,115 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,589 from holding Bank of America or generate 51.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.53% |
| Values | Daily Returns |
Bank of America vs. GXO 165 15 JUL 26
Performance |
| Timeline |
| Bank of America |
| GXO 165 15 |
Bank of America and 36262GAB7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 36262GAB7
The main advantage of trading using opposite Bank of America and 36262GAB7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 36262GAB7 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 36262GAB7 will offset losses from the drop in 36262GAB7's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| 36262GAB7 vs. AEP TEX INC | 36262GAB7 vs. US BANK NATIONAL | 36262GAB7 vs. MetLife | 36262GAB7 vs. Brera Holdings PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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