Correlation Between Bank of America and PROCTER
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By analyzing existing cross correlation between Bank of America and PROCTER GAMBLE 285, you can compare the effects of market volatilities on Bank of America and PROCTER 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 PROCTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and PROCTER.
Diversification Opportunities for Bank of America and PROCTER
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and PROCTER is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PROCTER GAMBLE 285 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE 285 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 PROCTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROCTER GAMBLE 285 has no effect on the direction of Bank of America i.e., Bank of America and PROCTER go up and down completely randomly.
Pair Corralation between Bank of America and PROCTER
Considering the 90-day investment horizon Bank of America is expected to generate 2.97 times more return on investment than PROCTER. However, Bank of America is 2.97 times more volatile than PROCTER GAMBLE 285. It trades about 0.05 of its potential returns per unit of risk. PROCTER GAMBLE 285 is currently generating about 0.03 per unit of risk. If you would invest 4,653 in Bank of America on November 18, 2024 and sell it today you would earn a total of 43.00 from holding Bank of America or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. PROCTER GAMBLE 285
Performance |
| Timeline |
| Bank of America |
| PROCTER GAMBLE 285 |
Bank of America and PROCTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and PROCTER
The main advantage of trading using opposite Bank of America and PROCTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, PROCTER 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 PROCTER will offset losses from the drop in PROCTER'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 |
| PROCTER vs. Kossan Rubber Industries | PROCTER vs. Integrated Media Technology | PROCTER vs. Alto Ingredients | PROCTER vs. Barrick Gold Corp |
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.
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