Correlation Between Bank of America and 452327AM1
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By analyzing existing cross correlation between Bank of America and ILMN 255 23 MAR 31, you can compare the effects of market volatilities on Bank of America and 452327AM1 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 452327AM1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 452327AM1.
Diversification Opportunities for Bank of America and 452327AM1
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 452327AM1 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ILMN 255 23 MAR 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILMN 255 23 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 452327AM1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILMN 255 23 has no effect on the direction of Bank of America i.e., Bank of America and 452327AM1 go up and down completely randomly.
Pair Corralation between Bank of America and 452327AM1
Considering the 90-day investment horizon Bank of America is expected to generate 3.0 times more return on investment than 452327AM1. However, Bank of America is 3.0 times more volatile than ILMN 255 23 MAR 31. It trades about 0.29 of its potential returns per unit of risk. ILMN 255 23 MAR 31 is currently generating about -0.16 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Bank of America vs. ILMN 255 23 MAR 31
Performance |
| Timeline |
| Bank of America |
| ILMN 255 23 |
Bank of America and 452327AM1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 452327AM1
The main advantage of trading using opposite Bank of America and 452327AM1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 452327AM1 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 452327AM1 will offset losses from the drop in 452327AM1's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| 452327AM1 vs. ATT Inc | 452327AM1 vs. Home Depot | 452327AM1 vs. Cisco Systems | 452327AM1 vs. Dupont De Nemours |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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