Correlation Between Bank of America and TOTAL
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By analyzing existing cross correlation between Bank of America and TOTAL CAP 3883, you can compare the effects of market volatilities on Bank of America and TOTAL 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 TOTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and TOTAL.
Diversification Opportunities for Bank of America and TOTAL
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and TOTAL is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and TOTAL CAP 3883 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL CAP 3883 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 TOTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL CAP 3883 has no effect on the direction of Bank of America i.e., Bank of America and TOTAL go up and down completely randomly.
Pair Corralation between Bank of America and TOTAL
Considering the 90-day investment horizon Bank of America is expected to generate 9.19 times more return on investment than TOTAL. However, Bank of America is 9.19 times more volatile than TOTAL CAP 3883. It trades about 0.27 of its potential returns per unit of risk. TOTAL CAP 3883 is currently generating about 0.0 per unit of risk. If you would invest 4,253 in Bank of America on August 30, 2024 and sell it today you would earn a total of 524.00 from holding Bank of America or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Bank of America vs. TOTAL CAP 3883
Performance |
| Timeline |
| Bank of America |
| TOTAL CAP 3883 |
Bank of America and TOTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and TOTAL
The main advantage of trading using opposite Bank of America and TOTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, TOTAL 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 TOTAL will offset losses from the drop in TOTAL's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| TOTAL vs. Kandi Technologies Group | TOTAL vs. Payoneer Global | TOTAL vs. Asure Software | TOTAL vs. Reservoir Media |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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