Correlation Between Bank of America and ONEOK
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By analyzing existing cross correlation between Bank of America and ONEOK PARTNERS L, you can compare the effects of market volatilities on Bank of America and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ONEOK.
Diversification Opportunities for Bank of America and ONEOK
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and ONEOK is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ONEOK PARTNERS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK PARTNERS L 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK PARTNERS L has no effect on the direction of Bank of America i.e., Bank of America and ONEOK go up and down completely randomly.
Pair Corralation between Bank of America and ONEOK
Considering the 90-day investment horizon Bank of America is expected to generate 2.38 times more return on investment than ONEOK. However, Bank of America is 2.38 times more volatile than ONEOK PARTNERS L. It trades about 0.32 of its potential returns per unit of risk. ONEOK PARTNERS L is currently generating about 0.31 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Bank of America vs. ONEOK PARTNERS L
Performance |
| Timeline |
| Bank of America |
| ONEOK PARTNERS L |
Bank of America and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ONEOK
The main advantage of trading using opposite Bank of America and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK'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 |
| ONEOK vs. Keurig Dr Pepper | ONEOK vs. Compania Cervecerias Unidas | ONEOK vs. Ross Stores | ONEOK vs. Shoe Carnival |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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