Correlation Between Bank of America and Buckeye
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Buckeye Partners 675, you can compare the effects of market volatilities on Bank of America and Buckeye 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 Buckeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Buckeye.
Diversification Opportunities for Bank of America and Buckeye
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Buckeye is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Buckeye Partners 675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buckeye Partners 675 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 Buckeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buckeye Partners 675 has no effect on the direction of Bank of America i.e., Bank of America and Buckeye go up and down completely randomly.
Pair Corralation between Bank of America and Buckeye
Considering the 90-day investment horizon Bank of America is expected to generate 0.18 times more return on investment than Buckeye. However, Bank of America is 5.49 times less risky than Buckeye. It trades about 0.01 of its potential returns per unit of risk. Buckeye Partners 675 is currently generating about -0.36 per unit of risk. If you would invest 4,565 in Bank of America on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Bank of America or generate 0.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 38.1% |
Values | Daily Returns |
Bank of America vs. Buckeye Partners 675
Performance |
Timeline |
Bank of America |
Buckeye Partners 675 |
Bank of America and Buckeye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and Buckeye
The main advantage of trading using opposite Bank of America and Buckeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Buckeye 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 Buckeye will offset losses from the drop in Buckeye'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 |
Buckeye vs. Sapiens International | Buckeye vs. Asure Software | Buckeye vs. Paltalk | Buckeye vs. Q2 Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |