Correlation Between Bank of America and GEORGETOWN
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By analyzing existing cross correlation between Bank of America and GEORGETOWN UNIV 4315, you can compare the effects of market volatilities on Bank of America and GEORGETOWN 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 GEORGETOWN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and GEORGETOWN.
Diversification Opportunities for Bank of America and GEORGETOWN
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and GEORGETOWN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and GEORGETOWN UNIV 4315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEORGETOWN UNIV 4315 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 GEORGETOWN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEORGETOWN UNIV 4315 has no effect on the direction of Bank of America i.e., Bank of America and GEORGETOWN go up and down completely randomly.
Pair Corralation between Bank of America and GEORGETOWN
Considering the 90-day investment horizon Bank of America is expected to generate 0.69 times more return on investment than GEORGETOWN. However, Bank of America is 1.46 times less risky than GEORGETOWN. It trades about 0.18 of its potential returns per unit of risk. GEORGETOWN UNIV 4315 is currently generating about -0.06 per unit of risk. If you would invest 3,857 in Bank of America on September 12, 2024 and sell it today you would earn a total of 751.00 from holding Bank of America or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 39.06% |
| Values | Daily Returns |
Bank of America vs. GEORGETOWN UNIV 4315
Performance |
| Timeline |
| Bank of America |
| GEORGETOWN UNIV 4315 |
Bank of America and GEORGETOWN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and GEORGETOWN
The main advantage of trading using opposite Bank of America and GEORGETOWN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, GEORGETOWN 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 GEORGETOWN will offset losses from the drop in GEORGETOWN'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. Nu Holdings |
| GEORGETOWN vs. Inflection Point Acquisition | GEORGETOWN vs. Boston Omaha Corp | GEORGETOWN vs. Chester Mining | GEORGETOWN vs. Aldel Financial II |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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