Correlation Between Bank of America and KROGER
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By analyzing existing cross correlation between Bank of America and KROGER 445 percent, you can compare the effects of market volatilities on Bank of America and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and KROGER.
Diversification Opportunities for Bank of America and KROGER
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and KROGER is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and KROGER 445 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 445 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 445 percent has no effect on the direction of Bank of America i.e., Bank of America and KROGER go up and down completely randomly.
Pair Corralation between Bank of America and KROGER
Considering the 90-day investment horizon Bank of America is expected to generate 38.16 times less return on investment than KROGER. But when comparing it to its historical volatility, Bank of America is 53.55 times less risky than KROGER. It trades about 0.1 of its potential returns per unit of risk. KROGER 445 percent is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,586 in KROGER 445 percent on August 31, 2024 and sell it today you would earn a total of 76.00 from holding KROGER 445 percent or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.96% |
| Values | Daily Returns |
Bank of America vs. KROGER 445 percent
Performance |
| Timeline |
| Bank of America |
| KROGER 445 percent |
Bank of America and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and KROGER
The main advantage of trading using opposite Bank of America and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Yuexiu Transport Infrastructure | KROGER vs. Dominos Pizza | KROGER vs. BJs Restaurants | KROGER vs. Bt Brands |
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.
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