Correlation Between Bank of America and 718546AK0
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By analyzing existing cross correlation between Bank of America and PHILLIPS 66 465, you can compare the effects of market volatilities on Bank of America and 718546AK0 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 718546AK0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 718546AK0.
Diversification Opportunities for Bank of America and 718546AK0
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and 718546AK0 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and PHILLIPS 66 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILLIPS 66 465 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 718546AK0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILLIPS 66 465 has no effect on the direction of Bank of America i.e., Bank of America and 718546AK0 go up and down completely randomly.
Pair Corralation between Bank of America and 718546AK0
Considering the 90-day investment horizon Bank of America is expected to under-perform the 718546AK0. In addition to that, Bank of America is 2.33 times more volatile than PHILLIPS 66 465. It trades about -0.09 of its total potential returns per unit of risk. PHILLIPS 66 465 is currently generating about 0.06 per unit of volatility. If you would invest 9,619 in PHILLIPS 66 465 on December 5, 2024 and sell it today you would earn a total of 233.00 from holding PHILLIPS 66 465 or generate 2.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Bank of America vs. PHILLIPS 66 465
Performance |
Timeline |
Bank of America |
PHILLIPS 66 465 |
Bank of America and 718546AK0 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and 718546AK0
The main advantage of trading using opposite Bank of America and 718546AK0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 718546AK0 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 718546AK0 will offset losses from the drop in 718546AK0'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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