Correlation Between Bank of America and 693304AV9
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By analyzing existing cross correlation between Bank of America and PECO ENERGY 37, you can compare the effects of market volatilities on Bank of America and 693304AV9 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 693304AV9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 693304AV9.
Diversification Opportunities for Bank of America and 693304AV9
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and 693304AV9 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PECO ENERGY 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 37 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 693304AV9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 37 has no effect on the direction of Bank of America i.e., Bank of America and 693304AV9 go up and down completely randomly.
Pair Corralation between Bank of America and 693304AV9
Considering the 90-day investment horizon Bank of America is expected to generate 124.44 times less return on investment than 693304AV9. But when comparing it to its historical volatility, Bank of America is 70.98 times less risky than 693304AV9. It trades about 0.06 of its potential returns per unit of risk. PECO ENERGY 37 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,355 in PECO ENERGY 37 on August 28, 2024 and sell it today you would lose (632.00) from holding PECO ENERGY 37 or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 33.4% |
| Values | Daily Returns |
Bank of America vs. PECO ENERGY 37
Performance |
| Timeline |
| Bank of America |
| PECO ENERGY 37 |
Bank of America and 693304AV9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 693304AV9
The main advantage of trading using opposite Bank of America and 693304AV9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 693304AV9 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 693304AV9 will offset losses from the drop in 693304AV9's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| 693304AV9 vs. Eastman Chemical | 693304AV9 vs. Axalta Coating Systems | 693304AV9 vs. Arq Inc | 693304AV9 vs. Albertsons Companies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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