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.
C's RSI Oscillator climbs out of oversold territory
The RSI Indicator for C moved out of oversold territory on March 14, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In of the 29 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on March 20, 2025. You may want to consider a long position or call options on C as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for C just turned positive on March 20, 2025. Looking at past instances where C's MACD turned positive, the stock continued to rise in of 48 cases 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 320 cases, the price rose further within the following month. The odds of a continued upward trend are .
C may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where C's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
C moved below its 50-day moving average on March 04, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for C crossed bearishly below the 50-day moving average on March 06, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for C entered a downward trend on March 19, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 36, placing this stock slightly worse than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. C’s price grows at a lower 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