Correlation Between Bank of America and 718172CX5
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By analyzing existing cross correlation between Bank of America and PM 575 17 NOV 32, you can compare the effects of market volatilities on Bank of America and 718172CX5 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 718172CX5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 718172CX5.
Diversification Opportunities for Bank of America and 718172CX5
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 718172CX5 is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PM 575 17 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PM 575 17 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 718172CX5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PM 575 17 has no effect on the direction of Bank of America i.e., Bank of America and 718172CX5 go up and down completely randomly.
Pair Corralation between Bank of America and 718172CX5
Considering the 90-day investment horizon Bank of America is expected to generate 2.03 times more return on investment than 718172CX5. However, Bank of America is 2.03 times more volatile than PM 575 17 NOV 32. It trades about 0.1 of its potential returns per unit of risk. PM 575 17 NOV 32 is currently generating about 0.01 per unit of risk. If you would invest 2,820 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,931 from holding Bank of America or generate 68.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Bank of America vs. PM 575 17 NOV 32
Performance |
| Timeline |
| Bank of America |
| PM 575 17 |
Bank of America and 718172CX5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 718172CX5
The main advantage of trading using opposite Bank of America and 718172CX5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 718172CX5 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 718172CX5 will offset losses from the drop in 718172CX5's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| 718172CX5 vs. ATT Inc | 718172CX5 vs. Home Depot | 718172CX5 vs. Cisco Systems | 718172CX5 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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