Correlation Between Bank of America and 68389XCH6
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By analyzing existing cross correlation between Bank of America and ORCL 615 09 NOV 29, you can compare the effects of market volatilities on Bank of America and 68389XCH6 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 68389XCH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 68389XCH6.
Diversification Opportunities for Bank of America and 68389XCH6
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 68389XCH6 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ORCL 615 09 NOV 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORCL 615 09 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 68389XCH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORCL 615 09 has no effect on the direction of Bank of America i.e., Bank of America and 68389XCH6 go up and down completely randomly.
Pair Corralation between Bank of America and 68389XCH6
Considering the 90-day investment horizon Bank of America is expected to generate 5.52 times more return on investment than 68389XCH6. However, Bank of America is 5.52 times more volatile than ORCL 615 09 NOV 29. It trades about 0.31 of its potential returns per unit of risk. ORCL 615 09 NOV 29 is currently generating about -0.12 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. ORCL 615 09 NOV 29
Performance |
| Timeline |
| Bank of America |
| ORCL 615 09 |
Bank of America and 68389XCH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 68389XCH6
The main advantage of trading using opposite Bank of America and 68389XCH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 68389XCH6 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 68389XCH6 will offset losses from the drop in 68389XCH6'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. JPMorgan Chase Co |
| 68389XCH6 vs. Academy Sports Outdoors | 68389XCH6 vs. Eastman Kodak Co | 68389XCH6 vs. Yuexiu Transport Infrastructure | 68389XCH6 vs. Apogee Enterprises |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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