Correlation Between Bank of America and NORSK
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By analyzing existing cross correlation between Bank of America and NORSK HYDRO A, you can compare the effects of market volatilities on Bank of America and NORSK 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 NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and NORSK.
Diversification Opportunities for Bank of America and NORSK
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and NORSK is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A 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 NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of Bank of America i.e., Bank of America and NORSK go up and down completely randomly.
Pair Corralation between Bank of America and NORSK
Considering the 90-day investment horizon Bank of America is expected to generate 2.14 times more return on investment than NORSK. However, Bank of America is 2.14 times more volatile than NORSK HYDRO A. It trades about 0.1 of its potential returns per unit of risk. NORSK HYDRO A is currently generating about 0.0 per unit of risk. If you would invest 2,824 in Bank of America on September 1, 2024 and sell it today you would earn a total of 1,927 from holding Bank of America or generate 68.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.68% |
| Values | Daily Returns |
Bank of America vs. NORSK HYDRO A
Performance |
| Timeline |
| Bank of America |
| NORSK HYDRO A |
Bank of America and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and NORSK
The main advantage of trading using opposite Bank of America and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK's long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| NORSK vs. Magnite | NORSK vs. National CineMedia | NORSK vs. WiMi Hologram Cloud | NORSK vs. Dolphin Entertainment |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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