Correlation Between Bank of America and 855244AS8
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By analyzing existing cross correlation between Bank of America and STARBUCKS P 45, you can compare the effects of market volatilities on Bank of America and 855244AS8 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 855244AS8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 855244AS8.
Diversification Opportunities for Bank of America and 855244AS8
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 855244AS8 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and STARBUCKS P 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STARBUCKS P 45 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 855244AS8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STARBUCKS P 45 has no effect on the direction of Bank of America i.e., Bank of America and 855244AS8 go up and down completely randomly.
Pair Corralation between Bank of America and 855244AS8
Considering the 90-day investment horizon Bank of America is expected to generate 1.2 times more return on investment than 855244AS8. However, Bank of America is 1.2 times more volatile than STARBUCKS P 45. It trades about 0.12 of its potential returns per unit of risk. STARBUCKS P 45 is currently generating about -0.03 per unit of risk. If you would invest 3,409 in Bank of America on August 27, 2024 and sell it today you would earn a total of 1,291 from holding Bank of America or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.09% |
| Values | Daily Returns |
Bank of America vs. STARBUCKS P 45
Performance |
| Timeline |
| Bank of America |
| STARBUCKS P 45 |
Bank of America and 855244AS8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 855244AS8
The main advantage of trading using opposite Bank of America and 855244AS8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 855244AS8 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 855244AS8 will offset losses from the drop in 855244AS8'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 |
| 855244AS8 vs. Eastman Chemical | 855244AS8 vs. Avient Corp | 855244AS8 vs. Balchem | 855244AS8 vs. Naked Wines plc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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