Correlation Between Bank of America and 743315AV5
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and PROGRESSIVE P OH, you can compare the effects of market volatilities on Bank of America and 743315AV5 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 743315AV5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 743315AV5.
Diversification Opportunities for Bank of America and 743315AV5
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 743315AV5 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PROGRESSIVE P OH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROGRESSIVE P OH 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 743315AV5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROGRESSIVE P OH has no effect on the direction of Bank of America i.e., Bank of America and 743315AV5 go up and down completely randomly.
Pair Corralation between Bank of America and 743315AV5
Considering the 90-day investment horizon Bank of America is expected to generate 5.86 times more return on investment than 743315AV5. However, Bank of America is 5.86 times more volatile than PROGRESSIVE P OH. It trades about 0.29 of its potential returns per unit of risk. PROGRESSIVE P OH is currently generating about 0.12 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. PROGRESSIVE P OH
Performance |
| Timeline |
| Bank of America |
| PROGRESSIVE P OH |
Bank of America and 743315AV5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 743315AV5
The main advantage of trading using opposite Bank of America and 743315AV5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 743315AV5 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 743315AV5 will offset losses from the drop in 743315AV5'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 |
| 743315AV5 vs. Drilling Tools International | 743315AV5 vs. Transocean | 743315AV5 vs. Integrated Drilling Equipment | 743315AV5 vs. Tower Semiconductor |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |