Correlation Between Bank of America and Kaiser
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By analyzing existing cross correlation between Bank of America and Kaiser Permanente, you can compare the effects of market volatilities on Bank of America and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Kaiser.
Diversification Opportunities for Bank of America and Kaiser
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Kaiser is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Bank of America i.e., Bank of America and Kaiser go up and down completely randomly.
Pair Corralation between Bank of America and Kaiser
Considering the 90-day investment horizon Bank of America is expected to generate 1.23 times more return on investment than Kaiser. However, Bank of America is 1.23 times more volatile than Kaiser Permanente. It trades about 0.32 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.06 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 | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. Kaiser Permanente
Performance |
| Timeline |
| Bank of America |
| Kaiser Permanente |
Bank of America and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Kaiser
The main advantage of trading using opposite Bank of America and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser'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 |
| Kaiser vs. AEP TEX INC | Kaiser vs. US BANK NATIONAL | Kaiser vs. FactSet Research Systems | Kaiser vs. Aurora Innovation |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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