Correlation Between Bank of America and International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and International Game Technology, you can compare the effects of market volatilities on Bank of America and International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and International.
Diversification Opportunities for Bank of America and International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and International is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Bank of America i.e., Bank of America and International go up and down completely randomly.
Pair Corralation between Bank of America and International
Considering the 90-day investment horizon Bank of America is expected to generate 4.18 times more return on investment than International. However, Bank of America is 4.18 times more volatile than International Game Technology. It trades about 0.32 of its potential returns per unit of risk. International Game Technology is currently generating about -0.1 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Bank of America vs. International Game Technology
Performance |
| Timeline |
| Bank of America |
| International Game |
Bank of America and International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and International
The main advantage of trading using opposite Bank of America and International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, International 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 International will offset losses from the drop in International'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 |
| International vs. AEP TEX INC | International vs. US BANK NATIONAL | International vs. Bank of America | International vs. GE Aerospace |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |