Correlation Between Bank of America and UNITED
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By analyzing existing cross correlation between Bank of America and UNITED TECHNOLOGIES P, you can compare the effects of market volatilities on Bank of America and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and UNITED.
Diversification Opportunities for Bank of America and UNITED
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and UNITED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED TECHNOLOGIES has no effect on the direction of Bank of America i.e., Bank of America and UNITED go up and down completely randomly.
Pair Corralation between Bank of America and UNITED
If you would invest 3,025 in Bank of America on September 4, 2024 and sell it today you would earn a total of 1,679 from holding Bank of America or generate 55.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. UNITED TECHNOLOGIES P
Performance |
| Timeline |
| Bank of America |
| UNITED TECHNOLOGIES |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and UNITED
The main advantage of trading using opposite Bank of America and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Aquagold International | Bank of America vs. Thrivent High Yield |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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