Correlation Between Bank of America and 46284VAE1
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By analyzing existing cross correlation between Bank of America and Iron Mountain 525, you can compare the effects of market volatilities on Bank of America and 46284VAE1 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 46284VAE1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 46284VAE1.
Diversification Opportunities for Bank of America and 46284VAE1
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and 46284VAE1 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Iron Mountain 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Mountain 525 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 46284VAE1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Mountain 525 has no effect on the direction of Bank of America i.e., Bank of America and 46284VAE1 go up and down completely randomly.
Pair Corralation between Bank of America and 46284VAE1
Considering the 90-day investment horizon Bank of America is expected to generate 3.4 times more return on investment than 46284VAE1. However, Bank of America is 3.4 times more volatile than Iron Mountain 525. It trades about 0.23 of its potential returns per unit of risk. Iron Mountain 525 is currently generating about -0.19 per unit of risk. If you would invest 4,234 in Bank of America on August 24, 2024 and sell it today you would earn a total of 466.00 from holding Bank of America or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of America vs. Iron Mountain 525
Performance |
| Timeline |
| Bank of America |
| Iron Mountain 525 |
Bank of America and 46284VAE1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 46284VAE1
The main advantage of trading using opposite Bank of America and 46284VAE1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 46284VAE1 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 46284VAE1 will offset losses from the drop in 46284VAE1's long position.| Bank of America vs. Amtech Systems | Bank of America vs. Gold Fields Ltd | Bank of America vs. Aegean Airlines SA | Bank of America vs. Merck Company |
| 46284VAE1 vs. The Coca Cola | 46284VAE1 vs. JPMorgan Chase Co | 46284VAE1 vs. Dupont De Nemours | 46284VAE1 vs. Alcoa Corp |
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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