Correlation Between Bank of America and Graphic
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By analyzing existing cross correlation between Bank of America and Graphic Packaging International, you can compare the effects of market volatilities on Bank of America and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Graphic.
Diversification Opportunities for Bank of America and Graphic
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Graphic is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of Bank of America i.e., Bank of America and Graphic go up and down completely randomly.
Pair Corralation between Bank of America and Graphic
Considering the 90-day investment horizon Bank of America is expected to generate 1.01 times more return on investment than Graphic. However, Bank of America is 1.01 times more volatile than Graphic Packaging International. It trades about 0.31 of its potential returns per unit of risk. Graphic Packaging International is currently generating about -0.25 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Bank of America vs. Graphic Packaging Internationa
Performance |
| Timeline |
| Bank of America |
| Graphic Packaging |
Bank of America and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Graphic
The main advantage of trading using opposite Bank of America and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic'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 |
| Graphic vs. Microbot Medical | Graphic vs. Nyxoah | Graphic vs. Rackspace Technology | Graphic vs. Postal Realty Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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