Correlation Between Bank of America and 437076BS0
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By analyzing existing cross correlation between Bank of America and HOME DEPOT INC, you can compare the effects of market volatilities on Bank of America and 437076BS0 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 437076BS0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 437076BS0.
Diversification Opportunities for Bank of America and 437076BS0
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 437076BS0 is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and HOME DEPOT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT INC 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 437076BS0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT INC has no effect on the direction of Bank of America i.e., Bank of America and 437076BS0 go up and down completely randomly.
Pair Corralation between Bank of America and 437076BS0
Considering the 90-day investment horizon Bank of America is expected to generate 1.23 times more return on investment than 437076BS0. However, Bank of America is 1.23 times more volatile than HOME DEPOT INC. It trades about 0.25 of its potential returns per unit of risk. HOME DEPOT INC is currently generating about -0.21 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 | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank of America vs. HOME DEPOT INC
Performance |
| Timeline |
| Bank of America |
| HOME DEPOT INC |
Bank of America and 437076BS0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 437076BS0
The main advantage of trading using opposite Bank of America and 437076BS0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 437076BS0 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 437076BS0 will offset losses from the drop in 437076BS0'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 |
| 437076BS0 vs. Arrow Electronics | 437076BS0 vs. Inflection Point Acquisition | 437076BS0 vs. Griffon | 437076BS0 vs. Chester Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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