Correlation Between Bank of America and 70137WAG3
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and US70137WAG33, you can compare the effects of market volatilities on Bank of America and 70137WAG3 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 70137WAG3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 70137WAG3.
Diversification Opportunities for Bank of America and 70137WAG3
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 70137WAG3 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and US70137WAG33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70137WAG33 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 70137WAG3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70137WAG33 has no effect on the direction of Bank of America i.e., Bank of America and 70137WAG3 go up and down completely randomly.
Pair Corralation between Bank of America and 70137WAG3
Considering the 90-day investment horizon Bank of America is expected to generate 6.76 times more return on investment than 70137WAG3. However, Bank of America is 6.76 times more volatile than US70137WAG33. It trades about 0.27 of its potential returns per unit of risk. US70137WAG33 is currently generating about 0.1 per unit of risk. If you would invest 4,253 in Bank of America on August 30, 2024 and sell it today you would earn a total of 524.00 from holding Bank of America or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 82.61% |
| Values | Daily Returns |
Bank of America vs. US70137WAG33
Performance |
| Timeline |
| Bank of America |
| US70137WAG33 |
Bank of America and 70137WAG3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 70137WAG3
The main advantage of trading using opposite Bank of America and 70137WAG3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 70137WAG3 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 70137WAG3 will offset losses from the drop in 70137WAG3's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| 70137WAG3 vs. Integral Ad Science | 70137WAG3 vs. Playtika Holding Corp | 70137WAG3 vs. Fidus Investment Corp | 70137WAG3 vs. CapitaLand Investment Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |