Correlation Between Bank of America and VULCAN
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By analyzing existing cross correlation between Bank of America and VULCAN MATLS 39, you can compare the effects of market volatilities on Bank of America and VULCAN 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 VULCAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and VULCAN.
Diversification Opportunities for Bank of America and VULCAN
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and VULCAN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and VULCAN MATLS 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VULCAN MATLS 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 VULCAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VULCAN MATLS has no effect on the direction of Bank of America i.e., Bank of America and VULCAN go up and down completely randomly.
Pair Corralation between Bank of America and VULCAN
If you would invest 2,824 in Bank of America on September 1, 2024 and sell it today you would earn a total of 1,927 from holding Bank of America or generate 68.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. VULCAN MATLS 39
Performance |
| Timeline |
| Bank of America |
| VULCAN MATLS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and VULCAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and VULCAN
The main advantage of trading using opposite Bank of America and VULCAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, VULCAN 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 VULCAN will offset losses from the drop in VULCAN's long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| VULCAN vs. Toro Co | VULCAN vs. RBC Bearings Incorporated | VULCAN vs. BCB Bancorp | VULCAN vs. Mativ Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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