BAC 5125 Profile
| 060505FP4 | 95.77 0.00 0.00% |
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060505FP4 is trading at 95.77 as of the 6th of May 2024, a No Change since the beginning of the trading day. The bond's open price was 95.768. 060505FP4 has hardly any chance of defaulting, but has generated negative returns over the last 90 days. Ratings for BAC 5125 are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 8th of November 2023 and ending today, the 6th of May 2024. Click here to learn more.
060505FP4 Risk Profiles
Investors will always prefer to have the highest possible return on investment while minimizing volatility. 060505FP4 market risk premium is the additional return an investor will receive from holding 060505FP4 long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in 060505FP4. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although 060505FP4's alpha and beta are two of the key measurements used to evaluate 060505FP4's performance over the market, the standard measures of volatility play an important role as well.
| Mean Deviation | 0.4539 | |||
| Standard Deviation | 0.8607 | |||
| Variance | 0.7408 | |||
| Risk Adjusted Performance | (0.04) |
060505FP4 Against Markets
Picking the right benchmark for 060505FP4 bond is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in 060505FP4 bond price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for 060505FP4 is critical whether you are bullish or bearish towards BAC 5125 at a given time. Please also check how 060505FP4's historical prices are related to one of the top price index indicators.
060505FP4 Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with 060505FP4 bond to make a market-neutral strategy. Peer analysis of 060505FP4 could also be used in its relative valuation, which is a method of valuing 060505FP4 by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
How to buy 060505FP4 Bond?
Before investing in 060505FP4, you must ensure you fully understand your financial goals and how diversified (or not) your overall investments are now. Then, after you clearly understand your investment objectives, consider investing in 060505FP4. To buy 060505FP4 bond, you can follow these steps:- Choose a brokerage firm: You need to select a brokerage firm to buy shares of 060505FP4. Some popular options include Charles Schwab, Fidelity, TD Ameritrade, and Robinhood.
- Open an account: Once you have chosen a brokerage firm, you will need to open an account. You will be required to provide personal information, such as your name, address, and Social Security number.
- Fund your account: You will need to deposit funds into your brokerage account to purchase 060505FP4 bond. You can do this by transferring funds from your bank account or other investment accounts.
- Place your order: Once you have located BAC 5125 bond in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
- Monitor your investment: After you have purchased BAC 5125 bond, you should monitor your investment to track its performance and make informed decisions about buying, selling, or holding the bond
It's important to note that investing in stocks, such as BAC 5125, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember various factors, including economic indicators, change in net worth, political events, company-specific news, and investor sentiment, can influence the stock market. These factors can cause fluctuations in bond prices and lead to market volatility affecting your buy or sell decision. However, volatility can also present opportunities for investors to make gains by buying stocks when prices are low and selling when they are high. It's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments.
Already Invested in BAC 5125?
The danger of trading BAC 5125 is mainly related to its market volatility and Corporate Bond specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of 060505FP4 is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than 060505FP4. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile 060505FP4 is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any corporate bond could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.