Correlation Between Bank of America and TAISEM
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By analyzing existing cross correlation between Bank of America and TAISEM 3125 25 OCT 41, you can compare the effects of market volatilities on Bank of America and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and TAISEM.
Diversification Opportunities for Bank of America and TAISEM
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and TAISEM is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and TAISEM 3125 25 OCT 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 3125 25 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 3125 25 has no effect on the direction of Bank of America i.e., Bank of America and TAISEM go up and down completely randomly.
Pair Corralation between Bank of America and TAISEM
Considering the 90-day investment horizon Bank of America is expected to generate 1.57 times more return on investment than TAISEM. However, Bank of America is 1.57 times more volatile than TAISEM 3125 25 OCT 41. It trades about 0.12 of its potential returns per unit of risk. TAISEM 3125 25 OCT 41 is currently generating about 0.0 per unit of risk. If you would invest 3,722 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,029 from holding Bank of America or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.01% |
| Values | Daily Returns |
Bank of America vs. TAISEM 3125 25 OCT 41
Performance |
| Timeline |
| Bank of America |
| TAISEM 3125 25 |
Bank of America and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and TAISEM
The main advantage of trading using opposite Bank of America and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM'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 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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