Correlation Between Bank of America and LLOYDS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and LLOYDS BANKING GROUP, you can compare the effects of market volatilities on Bank of America and LLOYDS 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 LLOYDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and LLOYDS.
Diversification Opportunities for Bank of America and LLOYDS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and LLOYDS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and LLOYDS BANKING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS BANKING GROUP 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 LLOYDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS BANKING GROUP has no effect on the direction of Bank of America i.e., Bank of America and LLOYDS go up and down completely randomly.
Pair Corralation between Bank of America and LLOYDS
Considering the 90-day investment horizon Bank of America is expected to generate 1.19 times more return on investment than LLOYDS. However, Bank of America is 1.19 times more volatile than LLOYDS BANKING GROUP. It trades about 0.27 of its potential returns per unit of risk. LLOYDS BANKING GROUP is currently generating about -0.26 per unit of risk. If you would invest 4,262 in Bank of America on August 29, 2024 and sell it today you would earn a total of 513.00 from holding Bank of America or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Bank of America vs. LLOYDS BANKING GROUP
Performance |
| Timeline |
| Bank of America |
| LLOYDS BANKING GROUP |
Bank of America and LLOYDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and LLOYDS
The main advantage of trading using opposite Bank of America and LLOYDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, LLOYDS 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 LLOYDS will offset losses from the drop in LLOYDS's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| LLOYDS vs. AEP TEX INC | LLOYDS vs. US BANK NATIONAL | LLOYDS vs. Eat Beyond Global | LLOYDS vs. Charles Schwab 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance |