Correlation Between EXPEDIA and Bank of America
Specify exactly 2 symbols:
By analyzing existing cross correlation between EXPEDIA INC and Bank of America, you can compare the effects of market volatilities on EXPEDIA 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 EXPEDIA with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPEDIA and Bank of America.
Diversification Opportunities for EXPEDIA and Bank of America
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EXPEDIA and Bank is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding EXPEDIA 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 EXPEDIA 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 EXPEDIA 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 EXPEDIA i.e., EXPEDIA and Bank of America go up and down completely randomly.
Pair Corralation between EXPEDIA and Bank of America
Assuming the 90 days trading horizon EXPEDIA is expected to generate 5.07 times less return on investment than Bank of America. But when comparing it to its historical volatility, EXPEDIA INC is 1.2 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 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,693 in Bank of America on September 3, 2024 and sell it today you would earn a total of 605.00 from holding Bank of America or generate 35.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
EXPEDIA INC vs. Bank of America
Performance |
| Timeline |
| EXPEDIA INC |
| Bank of America |
EXPEDIA and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPEDIA and Bank of America
The main advantage of trading using opposite EXPEDIA and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPEDIA 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.| EXPEDIA vs. Bank of America | EXPEDIA vs. PennantPark Investment | EXPEDIA vs. Fidus Investment Corp | EXPEDIA vs. Chemours Co |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |