Correlation Between Bank of America and KINDER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on Bank of America and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and KINDER.
Diversification Opportunities for Bank of America and KINDER
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and KINDER is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of Bank of America i.e., Bank of America and KINDER go up and down completely randomly.
Pair Corralation between Bank of America and KINDER
Considering the 90-day investment horizon Bank of America is expected to generate 19.84 times less return on investment than KINDER. But when comparing it to its historical volatility, Bank of America is 29.89 times less risky than KINDER. It trades about 0.06 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,137 in KINDER MORGAN ENERGY on August 28, 2024 and sell it today you would lose (107.00) from holding KINDER MORGAN ENERGY or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.15% |
| Values | Daily Returns |
Bank of America vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| Bank of America |
| KINDER MORGAN ENERGY |
Bank of America and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and KINDER
The main advantage of trading using opposite Bank of America and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| KINDER vs. The Coca Cola | KINDER vs. JPMorgan Chase Co | KINDER vs. Dupont De Nemours | KINDER 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |