Correlation Between 00108WAF7 and Bank of America
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By analyzing existing cross correlation between AEP TEX INC and Bank of America, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Bank of America.
Diversification Opportunities for 00108WAF7 and Bank of America
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 00108WAF7 and Bank is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC 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 00108WAF7 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 AEP TEX INC 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 00108WAF7 i.e., 00108WAF7 and Bank of America go up and down completely randomly.
Pair Corralation between 00108WAF7 and Bank of America
Assuming the 90 days trading horizon AEP TEX INC is expected to under-perform the Bank of America. In addition to that, 00108WAF7 is 2.28 times more volatile than Bank of America. It trades about -0.05 of its total potential returns per unit of risk. Bank of America is currently generating about 0.29 per unit of volatility. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
AEP TEX INC vs. Bank of America
Performance |
| Timeline |
| AEP TEX INC |
| Bank of America |
00108WAF7 and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Bank of America
The main advantage of trading using opposite 00108WAF7 and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. Asure Software | 00108WAF7 vs. Casio Computer Co | 00108WAF7 vs. Haverty Furniture Companies | 00108WAF7 vs. SL Green Realty |
| 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 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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