Correlation Between Bank of America and 406216BA8
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By analyzing existing cross correlation between Bank of America and HALLIBURTON 45 percent, you can compare the effects of market volatilities on Bank of America and 406216BA8 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 406216BA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 406216BA8.
Diversification Opportunities for Bank of America and 406216BA8
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 406216BA8 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and HALLIBURTON 45 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALLIBURTON 45 percent 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 406216BA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HALLIBURTON 45 percent has no effect on the direction of Bank of America i.e., Bank of America and 406216BA8 go up and down completely randomly.
Pair Corralation between Bank of America and 406216BA8
Considering the 90-day investment horizon Bank of America is expected to generate 1.54 times more return on investment than 406216BA8. However, Bank of America is 1.54 times more volatile than HALLIBURTON 45 percent. It trades about 0.25 of its potential returns per unit of risk. HALLIBURTON 45 percent is currently generating about -0.22 per unit of risk. If you would invest 3,968 in Bank of America on August 30, 2024 and sell it today you would earn a total of 809.00 from holding Bank of America or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Bank of America vs. HALLIBURTON 45 percent
Performance |
| Timeline |
| Bank of America |
| HALLIBURTON 45 percent |
Bank of America and 406216BA8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 406216BA8
The main advantage of trading using opposite Bank of America and 406216BA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 406216BA8 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 406216BA8 will offset losses from the drop in 406216BA8'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 |
| 406216BA8 vs. Verra Mobility Corp | 406216BA8 vs. Cumulus Media Class | 406216BA8 vs. The Gap, | 406216BA8 vs. Nexstar Broadcasting Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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