Correlation Between Bank of America and DELHAIZE
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By analyzing existing cross correlation between Bank of America and DELHAIZE GROUP SA, you can compare the effects of market volatilities on Bank of America and DELHAIZE 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 DELHAIZE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and DELHAIZE.
Diversification Opportunities for Bank of America and DELHAIZE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and DELHAIZE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DELHAIZE GROUP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELHAIZE GROUP SA 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 DELHAIZE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELHAIZE GROUP SA has no effect on the direction of Bank of America i.e., Bank of America and DELHAIZE go up and down completely randomly.
Pair Corralation between Bank of America and DELHAIZE
Assuming the 90 days trading horizon Bank of America is expected to generate 0.38 times more return on investment than DELHAIZE. However, Bank of America is 2.65 times less risky than DELHAIZE. It trades about 0.12 of its potential returns per unit of risk. DELHAIZE GROUP SA is currently generating about 0.02 per unit of risk. If you would invest 1,923 in Bank of America on September 4, 2024 and sell it today you would earn a total of 355.00 from holding Bank of America or generate 18.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.96% |
| Values | Daily Returns |
Bank of America vs. DELHAIZE GROUP SA
Performance |
| Timeline |
| Bank of America |
| DELHAIZE GROUP SA |
Bank of America and DELHAIZE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and DELHAIZE
The main advantage of trading using opposite Bank of America and DELHAIZE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, DELHAIZE 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 DELHAIZE will offset losses from the drop in DELHAIZE's long position.| Bank of America vs. Wells Fargo | Bank of America vs. Wells Fargo | Bank of America vs. Bank of America | Bank of America vs. Bank of America |
| DELHAIZE vs. CapitaLand Investment Limited | DELHAIZE vs. Uber Technologies | DELHAIZE vs. Bank of America | DELHAIZE vs. Guangdong Investment Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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