Correlation Between Bank of America and 37190AAA7
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By analyzing existing cross correlation between Bank of America and G 175 10 APR 26, you can compare the effects of market volatilities on Bank of America and 37190AAA7 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 37190AAA7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 37190AAA7.
Diversification Opportunities for Bank of America and 37190AAA7
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and 37190AAA7 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and G 175 10 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37190AAA7 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 37190AAA7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37190AAA7 has no effect on the direction of Bank of America i.e., Bank of America and 37190AAA7 go up and down completely randomly.
Pair Corralation between Bank of America and 37190AAA7
Considering the 90-day investment horizon Bank of America is expected to generate 0.63 times more return on investment than 37190AAA7. However, Bank of America is 1.59 times less risky than 37190AAA7. It trades about -0.08 of its potential returns per unit of risk. G 175 10 APR 26 is currently generating about -0.35 per unit of risk. If you would invest 4,608 in Bank of America on October 13, 2024 and sell it today you would lose (97.00) from holding Bank of America or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.11% |
| Values | Daily Returns |
Bank of America vs. G 175 10 APR 26
Performance |
| Timeline |
| Bank of America |
| 37190AAA7 |
Bank of America and 37190AAA7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 37190AAA7
The main advantage of trading using opposite Bank of America and 37190AAA7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 37190AAA7 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 37190AAA7 will offset losses from the drop in 37190AAA7's long position.| Bank of America vs. Nu Holdings | Bank of America vs. Canadian Imperial Bank | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| 37190AAA7 vs. Sapiens International | 37190AAA7 vs. CVR Partners LP | 37190AAA7 vs. Kingboard Chemical Holdings | 37190AAA7 vs. Park Electrochemical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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