Correlation Between Bank of America and 37045XEB8
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By analyzing existing cross correlation between Bank of America and GM 6 09 JAN 28, you can compare the effects of market volatilities on Bank of America and 37045XEB8 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 37045XEB8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 37045XEB8.
Diversification Opportunities for Bank of America and 37045XEB8
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and 37045XEB8 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GM 6 09 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37045XEB8 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 37045XEB8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37045XEB8 has no effect on the direction of Bank of America i.e., Bank of America and 37045XEB8 go up and down completely randomly.
Pair Corralation between Bank of America and 37045XEB8
Considering the 90-day investment horizon Bank of America is expected to under-perform the 37045XEB8. In addition to that, Bank of America is 7.17 times more volatile than GM 6 09 JAN 28. It trades about -0.34 of its total potential returns per unit of risk. GM 6 09 JAN 28 is currently generating about -0.09 per unit of volatility. If you would invest 10,291 in GM 6 09 JAN 28 on November 28, 2024 and sell it today you would lose (24.00) from holding GM 6 09 JAN 28 or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. GM 6 09 JAN 28
Performance |
| Timeline |
| Bank of America |
| 37045XEB8 |
Bank of America and 37045XEB8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 37045XEB8
The main advantage of trading using opposite Bank of America and 37045XEB8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 37045XEB8 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 37045XEB8 will offset losses from the drop in 37045XEB8's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| 37045XEB8 vs. Sealed Air | 37045XEB8 vs. Delek Logistics Partners | 37045XEB8 vs. GMxico Transportes SAB | 37045XEB8 vs. PPG Industries |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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