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 in downward trend: price expected to drop as it breaks its higher Bollinger Band on September 13, 2023
C broke above its upper Bollinger Band on September 13, 2023. 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. The A.I.dvisor looked at 29 similar instances where the stock broke above the upper band. In of the 29 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
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 September 19, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where C's RSI Oscillator exited the oversold zone, of 33 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on September 12, 2023. You may want to consider a long position or call options on C as a result. In of 86 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 September 01, 2023. Looking at past instances where C's MACD turned positive, the stock continued to rise in of 44 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 300 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (0.419) is normal, around the industry mean (0.992). P/E Ratio (6.502) is within average values for comparable stocks, (16.894). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (3.508). Dividend Yield (0.050) settles around the average of (0.056) among similar stocks. P/S Ratio (1.039) is also within normal values, averaging (2.461).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. C’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a financial conglomerate
Industry MajorBanks
C and
Correlation & Price change
A.I.dvisor indicates that over the last year, C has been closely correlated with BAC. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if C jumps, then BAC could also see price increases.