Correlation Between CNJ Capital and Bank of America
Can any of the company-specific risk be diversified away by investing in both CNJ Capital and Bank of America at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CNJ Capital and Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Bank of America, you can compare the effects of market volatilities on CNJ Capital and Bank of America 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 CNJ Capital with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Bank of America.
Diversification Opportunities for CNJ Capital and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America and CNJ Capital 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 CNJ Capital Investments are associated (or correlated) with Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of CNJ Capital i.e., CNJ Capital and Bank of America go up and down completely randomly.
Pair Corralation between CNJ Capital and Bank of America
If you would invest 2,377 in Bank of America on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Bank of America or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Bank of America
Performance |
| Timeline |
| CNJ Capital Investments |
| Bank of America |
CNJ Capital and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Bank of America
The main advantage of trading using opposite CNJ Capital and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| CNJ Capital vs. Berkshire Hathaway CDR | CNJ Capital vs. E L Financial Corp | CNJ Capital vs. E L Financial 3 | CNJ Capital vs. Molson Coors Canada |
| Bank of America vs. CNJ Capital Investments | Bank of America vs. Bird Construction | Bank of America vs. Cogeco Communications | Bank of America vs. Brookfield Office Properties |
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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