Correlation Between Bank of America and SIMON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and SIMON PPTY GROUP, you can compare the effects of market volatilities on Bank of America and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and SIMON.
Diversification Opportunities for Bank of America and SIMON
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and SIMON is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Bank of America i.e., Bank of America and SIMON go up and down completely randomly.
Pair Corralation between Bank of America and SIMON
Considering the 90-day investment horizon Bank of America is expected to generate 1.66 times more return on investment than SIMON. However, Bank of America is 1.66 times more volatile than SIMON PPTY GROUP. It trades about 0.13 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.03 per unit of risk. If you would invest 2,949 in Bank of America on August 25, 2024 and sell it today you would earn a total of 1,751 from holding Bank of America or generate 59.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.8% |
| Values | Daily Returns |
Bank of America vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Bank of America |
| SIMON PPTY GROUP |
Bank of America and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and SIMON
The main advantage of trading using opposite Bank of America and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |