Correlation Between Bank of America and 74460DAJ8
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By analyzing existing cross correlation between Bank of America and PSA 225 09 NOV 31, you can compare the effects of market volatilities on Bank of America and 74460DAJ8 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 74460DAJ8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 74460DAJ8.
Diversification Opportunities for Bank of America and 74460DAJ8
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 74460DAJ8 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PSA 225 09 NOV 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSA 225 09 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 74460DAJ8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSA 225 09 has no effect on the direction of Bank of America i.e., Bank of America and 74460DAJ8 go up and down completely randomly.
Pair Corralation between Bank of America and 74460DAJ8
Considering the 90-day investment horizon Bank of America is expected to generate 1.4 times more return on investment than 74460DAJ8. However, Bank of America is 1.4 times more volatile than PSA 225 09 NOV 31. It trades about 0.32 of its potential returns per unit of risk. PSA 225 09 NOV 31 is currently generating about -0.17 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. PSA 225 09 NOV 31
Performance |
| Timeline |
| Bank of America |
| PSA 225 09 |
Bank of America and 74460DAJ8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 74460DAJ8
The main advantage of trading using opposite Bank of America and 74460DAJ8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 74460DAJ8 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 74460DAJ8 will offset losses from the drop in 74460DAJ8'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 |
| 74460DAJ8 vs. ATT Inc | 74460DAJ8 vs. Home Depot | 74460DAJ8 vs. Cisco Systems | 74460DAJ8 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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