Banks & capital markets
BAC vs COF: pairs trade
Bank of America (BAC) is a large US bank with consumer, commercial and investment-banking businesses. Capital One (COF) is a bank best known for credit cards and consumer lending. Bank stocks tend to move together because their earnings respond to the same forces: interest rates, loan demand, credit quality and the health of the economy. When the gap between them stretches unusually far, the model measures how far, and how long such gaps have typically taken to close.
How far apart, versus normal
Where the pair stands tonight — and the exact levels the model uses — is in the full report.
Qualification
A pair has to re-qualify on every nightly scan (stationarity and half-life tests); if it fails, it is benched and publishes nothing that night. Repeated stress at the safety-stop distance suspends it. Why pairs get benched →
Published signals
Every time the full report flagged BAC / COF, listed 30 days after publication.
| Published | Pair | Apart vs normal (at publication) | Typical time to close (modeled) |
|---|---|---|---|
| 2026-09-14 | BAC / COF | 5.2% further apart than normal | about 11 trading days |
These percentages measure how far the two stocks have drifted from their usual relationship with each other. They are a distance, not a return: they are not a gain, not a yield, and not a forecast of profit. Times to close are modeled. Modeled, not achieved. Hypothetical results have inherent limitations and do not represent actual trading.
How each signal resolved is published on the track record once it meets our publication bar.
Related pairs
New to this? What is pairs trading · Half-life explained · All explainers
See them the evening they are published
This page runs 30 days behind. The full report carries every opportunity the evening the model flags it.
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