Correlation Between Bank of America and 68902VAL1
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By analyzing existing cross correlation between Bank of America and OTIS WORLDWIDE P, you can compare the effects of market volatilities on Bank of America and 68902VAL1 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 68902VAL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 68902VAL1.
Diversification Opportunities for Bank of America and 68902VAL1
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 68902VAL1 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and OTIS WORLDWIDE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTIS WORLDWIDE P 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 68902VAL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTIS WORLDWIDE P has no effect on the direction of Bank of America i.e., Bank of America and 68902VAL1 go up and down completely randomly.
Pair Corralation between Bank of America and 68902VAL1
Considering the 90-day investment horizon Bank of America is expected to generate 2.07 times more return on investment than 68902VAL1. However, Bank of America is 2.07 times more volatile than OTIS WORLDWIDE P. It trades about 0.27 of its potential returns per unit of risk. OTIS WORLDWIDE P is currently generating about 0.03 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 520.00 from holding Bank of America or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
Bank of America vs. OTIS WORLDWIDE P
Performance |
| Timeline |
| Bank of America |
| OTIS WORLDWIDE P |
Bank of America and 68902VAL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 68902VAL1
The main advantage of trading using opposite Bank of America and 68902VAL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 68902VAL1 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 68902VAL1 will offset losses from the drop in 68902VAL1's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| 68902VAL1 vs. AEP TEX INC | 68902VAL1 vs. US BANK NATIONAL | 68902VAL1 vs. Bank of America | 68902VAL1 vs. GE Aerospace |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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