Bank of America Correlations

BAC Stock

USD 45.13 0.36 0.80%

The current 90-days correlation between Bank of America and Royal Bank of is 0.34 (i.e., Weak diversification). The correlation of Bank of America is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Bank of America Correlation With Market

Poor diversification

The correlation between Bank of America and DJI is 0.72 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.

Moving together with Bank Stock

0.86	C	Citigroup Aggressive Push	Pair Corr
0.71	CM	Canadian Imperial Bank Fiscal Year End 5th of December 2024	Pair Corr
0.62	RY	Royal Bank Fiscal Year End 5th of December 2024	Pair Corr
0.61	BML-PL	Bank of America	Pair Corr
0.94	EWBC	East West Bancorp Fiscal Year End 28th of January 2025	Pair Corr
0.89	BCS	Barclays PLC ADR Aggressive Push	Pair Corr
0.76	BMO	Bank of Montreal Fiscal Year End 6th of December 2024	Pair Corr
0.9	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.68	NTB	Bank of NT	Pair Corr
0.81	NWG	Natwest Group PLC	Pair Corr
0.8	UBS	UBS Group AG	Pair Corr
0.97	WFC	Wells Fargo Aggressive Push	Pair Corr
0.67	HSBC	HSBC Holdings PLC	Pair Corr
0.65	BAC-PB	Bank of America	Pair Corr
0.65	BAC-PE	Bank of America	Pair Corr
0.68	BAC-PK	Bank of America	Pair Corr
0.77	MUFG	Mitsubishi UFJ Financial Earnings Call This Week	Pair Corr

Moving against Bank Stock

0.5	ING	ING Group NV	Pair Corr
0.48	TD	Toronto Dominion Bank Sell-off Trend	Pair Corr

Related Correlations Analysis

	RY	NU	HSBC	BMO	BNS
RY		0.5	0.73	0.66	0.94	RY
NU	0.5		0.52	0.39	0.38	NU
HSBC	0.73	0.52		0.74	0.79	HSBC
BMO	0.66	0.39	0.74		0.77	BMO
BNS	0.94	0.38	0.79	0.77		BNS
	RY	NU	HSBC	BMO	BNS

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Risk-Adjusted Indicators

There is a big difference between Bank Stock performing well and Bank of America Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Bank of America's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RY	0.66	0.13	0.06	0.48	0.45	(0.75)	1.69	(0.87)	4.27
NU	1.73	0.23	0.09	0.37	2.20	(1.85)	4.29	(4.07)	12.05
HSBC	0.99	0.07	0.00	0.27	1.36	(0.96)	2.03	(2.34)	6.61
BMO	0.84	0.08	0.04	0.26	1.18	(0.92)	1.76	(1.35)	8.02
BNS	0.81	0.18	0.10	0.53	0.75	(0.93)	1.85	(1.26)	4.91

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