Correlation Between Bank of America and 37045XDZ6
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By analyzing existing cross correlation between Bank of America and GM 605 10 OCT 25, you can compare the effects of market volatilities on Bank of America and 37045XDZ6 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 37045XDZ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 37045XDZ6.
Diversification Opportunities for Bank of America and 37045XDZ6
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 37045XDZ6 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GM 605 10 OCT 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM 605 10 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 37045XDZ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM 605 10 has no effect on the direction of Bank of America i.e., Bank of America and 37045XDZ6 go up and down completely randomly.
Pair Corralation between Bank of America and 37045XDZ6
Considering the 90-day investment horizon Bank of America is expected to generate 5.31 times more return on investment than 37045XDZ6. However, Bank of America is 5.31 times more volatile than GM 605 10 OCT 25. It trades about 0.06 of its potential returns per unit of risk. GM 605 10 OCT 25 is currently generating about 0.01 per unit of risk. If you would invest 3,079 in Bank of America on August 30, 2024 and sell it today you would earn a total of 1,698 from holding Bank of America or generate 55.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.77% |
| Values | Daily Returns |
Bank of America vs. GM 605 10 OCT 25
Performance |
| Timeline |
| Bank of America |
| GM 605 10 |
Bank of America and 37045XDZ6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 37045XDZ6
The main advantage of trading using opposite Bank of America and 37045XDZ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 37045XDZ6 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 37045XDZ6 will offset losses from the drop in 37045XDZ6's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| 37045XDZ6 vs. AEP TEX INC | 37045XDZ6 vs. US BANK NATIONAL | 37045XDZ6 vs. PayPal Holdings | 37045XDZ6 vs. IONQ Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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