Correlation Between 0641598M1 and Bank of America
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By analyzing existing cross correlation between BNS 5033259 15 SEP 26 and Bank of America, you can compare the effects of market volatilities on 0641598M1 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 0641598M1 with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of 0641598M1 and Bank of America.
Diversification Opportunities for 0641598M1 and Bank of America
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 0641598M1 and Bank is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding BNS 5033259 15 SEP 26 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 0641598M1 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 BNS 5033259 15 SEP 26 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 0641598M1 i.e., 0641598M1 and Bank of America go up and down completely randomly.
Pair Corralation between 0641598M1 and Bank of America
Assuming the 90 days trading horizon 0641598M1 is expected to generate 1.66 times less return on investment than Bank of America. In addition to that, 0641598M1 is 1.23 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 0.09 per unit of volatility. If you would invest 1,803 in Bank of America on August 26, 2024 and sell it today you would earn a total of 482.00 from holding Bank of America or generate 26.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 29.44% |
| Values | Daily Returns |
BNS 5033259 15 SEP 26 vs. Bank of America
Performance |
| Timeline |
| BNS 5033259 15 |
| Bank of America |
0641598M1 and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 0641598M1 and Bank of America
The main advantage of trading using opposite 0641598M1 and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 0641598M1 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.| 0641598M1 vs. Bank of America | 0641598M1 vs. SunLink Health Systems | 0641598M1 vs. Montauk Renewables | 0641598M1 vs. Titan Machinery |
| Bank of America vs. Bank of America | Bank of America vs. Bank of America | Bank of America vs. China Construction Bank | Bank of America vs. Bank of America |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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