Correlation Between Bank of America and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Bank of America and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and GENERAL.
Diversification Opportunities for Bank of America and GENERAL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and GENERAL is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Bank of America i.e., Bank of America and GENERAL go up and down completely randomly.
Pair Corralation between Bank of America and GENERAL
Considering the 90-day investment horizon Bank of America is expected to generate 3.0 times more return on investment than GENERAL. However, Bank of America is 3.0 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.05 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about 0.0 per unit of risk. If you would invest 3,278 in Bank of America on August 25, 2024 and sell it today you would earn a total of 1,422 from holding Bank of America or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Bank of America vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Bank of America |
| GENERAL DYNAMICS PORATION |
Bank of America and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and GENERAL
The main advantage of trading using opposite Bank of America and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| GENERAL vs. RadNet Inc | GENERAL vs. Ameriprise Financial | GENERAL vs. Tscan Therapeutics | GENERAL vs. Viemed Healthcare |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |