Comparative Analysis: BAC (6.93%) Pair Trader vs C (5.00%) Swing Trader
The financial sector offers a host of investment options with varying potential for returns and risk levels. We'll compare two investment strategies - the BAC Pair Trader for Financial Sector (TA) and the C Swing Trader, Long Only: Valuation & Seasonality Model (TA&FA). The former has recently returned 6.93% while the latter returned 5.00%.
Pair trading, as executed by the BAC Pair Trader, is a market-neutral strategy that matches a long position with a short position in a pair of highly correlated instruments such as two stocks. It capitalizes on the divergence in the price movements of the pair. In contrast, swing trading, as used in the C Swing Trader, aims to capture gains in a stock (or any financial instrument) over a period of a few days to several weeks. It relies on technical analysis to identify possible price patterns and market trends. The returns on these two strategies suggest that the BAC Pair Trader has outperformed the C Swing Trader recently, possibly indicating more successful trade executions or advantageous market conditions for this strategy.
Shifting to bot trading, these automated systems can be programmed to follow either of these strategies. A bot pair trader will continuously monitor the price ratio between a pair of stocks and make trades when the ratio deviates significantly from the historical mean. On the other hand, a bot swing trader would be designed to recognize technical signals indicating a price swing and execute trades accordingly. The choice between the two would depend on an investor's risk tolerance, return objectives, and confidence in the bot's algorithms and execution capabilities.
In terms of price growth, both BAC and C, as representative stocks of the @Major Banks industry, have had varied performances. BAC's price dipped by 0.60% this week, while C's price increased by 1.38%. Despite the sector's average weekly price drop of 0.49%, the average monthly and quarterly growth rates were +0.21% and +2.51%, respectively. These figures suggest a broader recovery in the banking industry, although week-to-week volatility is still a factor.
Lastly, looking at earnings dates, BAC is expected to report earnings on Jul 18, 2023, and C on Jul 14, 2023.
Momentum Indicator for C turns negative, indicating new downward trend
C saw its Momentum Indicator move below the 0 level on May 30, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for C moved out of overbought territory on May 21, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for C turned negative on May 23, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where C declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
C broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
C moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for C crossed bullishly above the 50-day moving average on May 07, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 264 cases where C Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.647) is normal, around the industry mean (0.958). C has a moderately high P/E Ratio (15.708) as compared to the industry average of (8.937). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (2.643). Dividend Yield (0.033) settles around the average of (0.053) among similar stocks. P/S Ratio (1.581) is also within normal values, averaging (2.460).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 30, placing this stock slightly worse than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. C’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a financial conglomerate
Industry MajorBanks
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