Correlation Between Bank of America and 693304BC0
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By analyzing existing cross correlation between Bank of America and EXC 285 15 SEP 51, you can compare the effects of market volatilities on Bank of America and 693304BC0 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 693304BC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 693304BC0.
Diversification Opportunities for Bank of America and 693304BC0
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and 693304BC0 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EXC 285 15 SEP 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXC 285 15 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 693304BC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXC 285 15 has no effect on the direction of Bank of America i.e., Bank of America and 693304BC0 go up and down completely randomly.
Pair Corralation between Bank of America and 693304BC0
Considering the 90-day investment horizon Bank of America is expected to generate 0.72 times more return on investment than 693304BC0. However, Bank of America is 1.39 times less risky than 693304BC0. It trades about 0.13 of its potential returns per unit of risk. EXC 285 15 SEP 51 is currently generating about -0.02 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 Together |
| Strength | Insignificant |
| Accuracy | 59.68% |
| Values | Daily Returns |
Bank of America vs. EXC 285 15 SEP 51
Performance |
| Timeline |
| Bank of America |
| EXC 285 15 |
Bank of America and 693304BC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 693304BC0
The main advantage of trading using opposite Bank of America and 693304BC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 693304BC0 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 693304BC0 will offset losses from the drop in 693304BC0'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 |
| 693304BC0 vs. ATT Inc | 693304BC0 vs. Home Depot | 693304BC0 vs. Cisco Systems | 693304BC0 vs. Dupont De Nemours |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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