Correlation Between Bank of America and Puyi
Can any of the company-specific risk be diversified away by investing in both Bank of America and Puyi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of America and Puyi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Puyi Inc ADR, you can compare the effects of market volatilities on Bank of America and Puyi 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 Bank of America with a short position of Puyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Puyi.
Diversification Opportunities for Bank of America and Puyi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Puyi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Puyi Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyi Inc ADR and Bank of America 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 Bank of America are associated (or correlated) with Puyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyi Inc ADR has no effect on the direction of Bank of America i.e., Bank of America and Puyi go up and down completely randomly.
Pair Corralation between Bank of America and Puyi
If you would invest (100.00) in Puyi Inc ADR on December 27, 2024 and sell it today you would earn a total of 100.00 from holding Puyi Inc ADR or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank of America vs. Puyi Inc ADR
Performance |
Timeline |
Bank of America |
Puyi Inc ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank of America and Puyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and Puyi
The main advantage of trading using opposite Bank of America and Puyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Puyi 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 Puyi will offset losses from the drop in Puyi's long position.Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
Puyi vs. Eaton Vance National | Puyi vs. Blackrock Muniholdings Ny | Puyi vs. Nuveen California Select | Puyi vs. MFS Investment Grade |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |