Correlation Between Bank of America and Match
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By analyzing existing cross correlation between Bank of America and Match Group 5625, you can compare the effects of market volatilities on Bank of America and Match 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 Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Match.
Diversification Opportunities for Bank of America and Match
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Match is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Match Group 5625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group 5625 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 Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group 5625 has no effect on the direction of Bank of America i.e., Bank of America and Match go up and down completely randomly.
Pair Corralation between Bank of America and Match
Considering the 90-day investment horizon Bank of America is expected to generate 2.17 times more return on investment than Match. However, Bank of America is 2.17 times more volatile than Match Group 5625. It trades about 0.13 of its potential returns per unit of risk. Match Group 5625 is currently generating about -0.02 per unit of risk. If you would invest 3,007 in Bank of America on September 2, 2024 and sell it today you would earn a total of 1,744 from holding Bank of America or generate 58.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.69% |
| Values | Daily Returns |
Bank of America vs. Match Group 5625
Performance |
| Timeline |
| Bank of America |
| Match Group 5625 |
Bank of America and Match Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Match
The main advantage of trading using opposite Bank of America and Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Match 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 Match will offset losses from the drop in Match'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 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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