Correlation Between 037389AK9 and Bank of America
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By analyzing existing cross correlation between AON P 8205 and Bank of America, you can compare the effects of market volatilities on 037389AK9 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 037389AK9 with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of 037389AK9 and Bank of America.
Diversification Opportunities for 037389AK9 and Bank of America
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 037389AK9 and Bank is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AON P 8205 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 037389AK9 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 AON P 8205 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 037389AK9 i.e., 037389AK9 and Bank of America go up and down completely randomly.
Pair Corralation between 037389AK9 and Bank of America
Assuming the 90 days trading horizon 037389AK9 is expected to generate 4.44 times less return on investment than Bank of America. But when comparing it to its historical volatility, AON P 8205 is 1.36 times less risky than Bank of America. It trades about 0.02 of its potential returns per unit of risk. Bank of America is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,184 in Bank of America on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Bank of America or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.2% |
| Values | Daily Returns |
AON P 8205 vs. Bank of America
Performance |
| Timeline |
| AON P 8205 |
| Bank of America |
037389AK9 and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 037389AK9 and Bank of America
The main advantage of trading using opposite 037389AK9 and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 037389AK9 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.| 037389AK9 vs. Celsius Holdings | 037389AK9 vs. Keurig Dr Pepper | 037389AK9 vs. Oatly Group AB | 037389AK9 vs. Simpson Manufacturing |
| Bank of America vs. Bank of America | Bank of America vs. Wells Fargo | Bank of America vs. Bank of America | Bank of America vs. China Construction Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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