Comparing BAC (+6.93%) Pair Trader vs JPM (6.32%) Swing Trader: Key Insights
Financial market participants are no strangers to the diversity of strategies employed to maximize their returns. Among them, two methods, Pair Trading, and Swing Trading, have gained popularity, with both techniques exemplified by specific tools. Today, we delve into comparing the performance of the BAC Pair Trader for the Financial Sector (Technical Analysis, TA) which yielded a 6.93% return, and the JPM Swing Trader: High Volatility Stocks for Active Trading (TA&FA), yielding 6.32%.
Firstly, the BAC Pair Trader for the Financial Sector leverages pairs trading, an essential component in the financial sector, which has shown an appreciable performance of 6.93%. Pair trading is a market-neutral trading strategy that matches a long position with a short position in a pair of highly correlated instruments, like two stocks. This strategy relies on statistical measures and the relationships between securities, profiting from the disparity between the two. BAC Pair Trader has demonstrated its effectiveness, outperforming its counterpart, the JPM Swing Trader.
In comparison, the JPM Swing Trader employs a strategy of capitalizing on stocks' price fluctuations over a short period, targeting gains from market volatility. Swing trading combines both technical analysis (TA) and fundamental analysis (FA), providing a broader perspective on the market dynamics. This approach proved potent as JPM Swing Trader achieved a return of 6.32%.
While the BAC Pair Trader slightly outperformed the JPM Swing Trader in returns, it's essential to consider the risk associated with each strategy. Pair trading often involves lower risk as it's a market-neutral strategy; meanwhile, swing trading can be riskier due to its dependency on market volatility.
The trading strategy for a bot trading pair trader and a bot swing trader works similarly to the human-controlled strategies, with the exception that decisions are made based on predefined algorithms. The advantage of bot trading lies in its ability to execute trades faster, more accurately, and without emotional bias. Depending on the algorithm's sophistication and market conditions, both can perform exceptionally well, with one not necessarily superior to the other.
Now, let's look at the future. Bank of America Corporation (BAC) and JPMorgan Chase & Co. (JPM) are due to report their earnings on July 18, 2023, and July 14, 2023, respectively. These dates are significant as earnings reports can significantly impact the market's perception of a stock's value, causing notable price fluctuations.
BAC's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for BAC turned positive on June 23, 2025. Looking at past instances where BAC's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 18, 2025. You may want to consider a long position or call options on BAC as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 BAC advanced for three days, in of 335 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 284 cases where BAC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BAC broke above its upper Bollinger Band on June 23, 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.
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 31, placing this stock slightly worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to 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.
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 (1.125) is normal, around the industry mean (0.958). P/E Ratio (12.182) is within average values for comparable stocks, (8.937). Projected Growth (PEG Ratio) (3.860) is also within normal values, averaging (2.643). BAC has a moderately low Dividend Yield (0.025) as compared to the industry average of (0.053). P/S Ratio (3.075) is also within normal values, averaging (2.460).
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General Information
a major bank
Industry MajorBanks
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