Correlation Between Bank of America and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and SOUTHERN CALIF GAS, you can compare the effects of market volatilities on Bank of America and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and SOUTHERN.
Diversification Opportunities for Bank of America and SOUTHERN
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and SOUTHERN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and SOUTHERN CALIF GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF GAS 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF GAS has no effect on the direction of Bank of America i.e., Bank of America and SOUTHERN go up and down completely randomly.
Pair Corralation between Bank of America and SOUTHERN
Considering the 90-day investment horizon Bank of America is expected to generate 164.45 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, Bank of America is 85.18 times less risky than SOUTHERN. It trades about 0.06 of its potential returns per unit of risk. SOUTHERN CALIF GAS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,785 in SOUTHERN CALIF GAS on September 3, 2024 and sell it today you would lose (209.00) from holding SOUTHERN CALIF GAS or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.77% |
| Values | Daily Returns |
Bank of America vs. SOUTHERN CALIF GAS
Performance |
| Timeline |
| Bank of America |
| SOUTHERN CALIF GAS |
Bank of America and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and SOUTHERN
The main advantage of trading using opposite Bank of America and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| SOUTHERN vs. Udemy Inc | SOUTHERN vs. Transocean | SOUTHERN vs. Valneva SE ADR | SOUTHERN vs. Sable Offshore 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |