Correlation Between Bank of America and Xtrackers
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Xtrackers II Global, you can compare the effects of market volatilities on Bank of America and Xtrackers 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 Xtrackers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Xtrackers.
Diversification Opportunities for Bank of America and Xtrackers
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Xtrackers is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Xtrackers II Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers II Global 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 Xtrackers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers II Global has no effect on the direction of Bank of America i.e., Bank of America and Xtrackers go up and down completely randomly.
Pair Corralation between Bank of America and Xtrackers
Considering the 90-day investment horizon Bank of America is expected to generate 3.7 times more return on investment than Xtrackers. However, Bank of America is 3.7 times more volatile than Xtrackers II Global. It trades about 0.1 of its potential returns per unit of risk. Xtrackers II Global is currently generating about 0.01 per unit of risk. If you would invest 2,820 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,931 from holding Bank of America or generate 68.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.16% |
Values | Daily Returns |
Bank of America vs. Xtrackers II Global
Performance |
Timeline |
Bank of America |
Xtrackers II Global |
Bank of America and Xtrackers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and Xtrackers
The main advantage of trading using opposite Bank of America and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Xtrackers 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 Xtrackers will offset losses from the drop in Xtrackers' long position.Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. NMI Holdings | Xtrackers vs. SIVERS SEMICONDUCTORS AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
CEOs Directory Screen CEOs from public companies around the world | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |