Correlation Between Bank of America and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and GENERAL MTRS FINL, 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
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and GENERAL is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 MTRS FINL 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 3.48 times more return on investment than GENERAL. However, Bank of America is 3.48 times more volatile than GENERAL MTRS FINL. It trades about 0.32 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about 0.05 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Bank of America |
| GENERAL MTRS FINL |
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. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| GENERAL vs. Evertz Technologies Limited | GENERAL vs. Analog Devices | GENERAL vs. Maiden Holdings | GENERAL vs. Minerals Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |