Correlation Between Bank of America and Ziggo
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By analyzing existing cross correlation between Bank of America and Ziggo 4875 percent, you can compare the effects of market volatilities on Bank of America and Ziggo 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 Ziggo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Ziggo.
Diversification Opportunities for Bank of America and Ziggo
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Ziggo is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Ziggo 4875 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziggo 4875 percent 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 Ziggo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziggo 4875 percent has no effect on the direction of Bank of America i.e., Bank of America and Ziggo go up and down completely randomly.
Pair Corralation between Bank of America and Ziggo
Considering the 90-day investment horizon Bank of America is expected to generate 1.88 times more return on investment than Ziggo. However, Bank of America is 1.88 times more volatile than Ziggo 4875 percent. It trades about 0.21 of its potential returns per unit of risk. Ziggo 4875 percent is currently generating about -0.33 per unit of risk. If you would invest 4,234 in Bank of America on August 24, 2024 and sell it today you would earn a total of 412.00 from holding Bank of America or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Ziggo 4875 percent
Performance |
| Timeline |
| Bank of America |
| Ziggo 4875 percent |
Bank of America and Ziggo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Ziggo
The main advantage of trading using opposite Bank of America and Ziggo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Ziggo 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 Ziggo will offset losses from the drop in Ziggo's long position.| Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. JPMorgan Chase Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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