Correlation Between 2028 Investment and Bank of America
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By analyzing existing cross correlation between 2028 Investment Grade and Bank of America, you can compare the effects of market volatilities on 2028 Investment 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 2028 Investment with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2028 Investment and Bank of America.
Diversification Opportunities for 2028 Investment and Bank of America
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 2028 and Bank is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding 2028 Investment Grade 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 2028 Investment 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 2028 Investment Grade 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 2028 Investment i.e., 2028 Investment and Bank of America go up and down completely randomly.
Pair Corralation between 2028 Investment and Bank of America
Assuming the 90 days trading horizon 2028 Investment is expected to generate 4.87 times less return on investment than Bank of America. But when comparing it to its historical volatility, 2028 Investment Grade is 1.93 times less risky than Bank of America. It trades about 0.07 of its potential returns per unit of risk. Bank of America is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,303 in Bank of America on November 3, 2024 and sell it today you would earn a total of 102.00 from holding Bank of America or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2028 Investment Grade vs. Bank of America
Performance |
| Timeline |
| 2028 Investment Grade |
| Bank of America |
2028 Investment and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2028 Investment and Bank of America
The main advantage of trading using opposite 2028 Investment and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2028 Investment 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.| 2028 Investment vs. Bausch Health Companies | 2028 Investment vs. Medical Facilities | 2028 Investment vs. Maple Peak Investments | 2028 Investment vs. Canaf Investments |
| Bank of America vs. Firan Technology Group | Bank of America vs. Guru Organic Energy | Bank of America vs. Goodfood Market Corp | Bank of America vs. Primaris Retail RE |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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