Correlation Between Banco Del and Bank of America
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By analyzing existing cross correlation between Banco del Bajo and Bank of America, you can compare the effects of market volatilities on Banco Del 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 Banco Del with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Del and Bank of America.
Diversification Opportunities for Banco Del and Bank of America
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Bank is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Banco del Bajo 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 Banco Del 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 Banco del Bajo 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 Banco Del i.e., Banco Del and Bank of America go up and down completely randomly.
Pair Corralation between Banco Del and Bank of America
Assuming the 90 days trading horizon Banco del Bajo is expected to generate 1.76 times more return on investment than Bank of America. However, Banco Del is 1.76 times more volatile than Bank of America. It trades about -0.07 of its potential returns per unit of risk. Bank of America is currently generating about -0.3 per unit of risk. If you would invest 4,350 in Banco del Bajo on September 25, 2024 and sell it today you would lose (133.00) from holding Banco del Bajo or give up 3.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Banco del Bajo vs. Bank of America
Performance |
Timeline |
Banco del Bajo |
Bank of America |
Banco Del and Bank of America Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banco Del and Bank of America
The main advantage of trading using opposite Banco Del and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Del 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.Banco Del vs. Samsung Electronics Co | Banco Del vs. Taiwan Semiconductor Manufacturing | Banco Del vs. JPMorgan Chase Co | Banco Del vs. Bank of America |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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