Correlation Between Bank of America and 817565BT0
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By analyzing existing cross correlation between Bank of America and SCI Corp 75, you can compare the effects of market volatilities on Bank of America and 817565BT0 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 817565BT0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 817565BT0.
Diversification Opportunities for Bank of America and 817565BT0
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and 817565BT0 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and SCI Corp 75 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCI Corp 75 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 817565BT0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCI Corp 75 has no effect on the direction of Bank of America i.e., Bank of America and 817565BT0 go up and down completely randomly.
Pair Corralation between Bank of America and 817565BT0
Considering the 90-day investment horizon Bank of America is expected to generate 1.97 times more return on investment than 817565BT0. However, Bank of America is 1.97 times more volatile than SCI Corp 75. It trades about 0.06 of its potential returns per unit of risk. SCI Corp 75 is currently generating about 0.0 per unit of risk. If you would invest 3,223 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,528 from holding Bank of America or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.78% |
| Values | Daily Returns |
Bank of America vs. SCI Corp 75
Performance |
| Timeline |
| Bank of America |
| SCI Corp 75 |
Bank of America and 817565BT0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 817565BT0
The main advantage of trading using opposite Bank of America and 817565BT0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 817565BT0 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 817565BT0 will offset losses from the drop in 817565BT0'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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