Correlation Between Bank of America and 1011778
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By analyzing existing cross correlation between Bank of America and 1011778 B C, you can compare the effects of market volatilities on Bank of America and 1011778 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 1011778. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 1011778.
Diversification Opportunities for Bank of America and 1011778
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 1011778 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and 1011778 B C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1011778 B C 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 1011778. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1011778 B C has no effect on the direction of Bank of America i.e., Bank of America and 1011778 go up and down completely randomly.
Pair Corralation between Bank of America and 1011778
Considering the 90-day investment horizon Bank of America is expected to generate 3.72 times more return on investment than 1011778. However, Bank of America is 3.72 times more volatile than 1011778 B C. It trades about 0.13 of its potential returns per unit of risk. 1011778 B C is currently generating about 0.01 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 | 99.6% |
| Values | Daily Returns |
Bank of America vs. 1011778 B C
Performance |
| Timeline |
| Bank of America |
| 1011778 B C |
Bank of America and 1011778 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 1011778
The main advantage of trading using opposite Bank of America and 1011778 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 1011778 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 1011778 will offset losses from the drop in 1011778'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 |
| 1011778 vs. AEP TEX INC | 1011778 vs. US BANK NATIONAL | 1011778 vs. FactSet Research Systems | 1011778 vs. Golden Agri Resources |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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