Correlation Between Bank of America and Evaluator Very
Can any of the company-specific risk be diversified away by investing in both Bank of America and Evaluator Very at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of America and Evaluator Very into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Evaluator Very Conservative, you can compare the effects of market volatilities on Bank of America and Evaluator Very and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank of America with a short position of Evaluator Very. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Evaluator Very.
Diversification Opportunities for Bank of America and Evaluator Very
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Evaluator is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Evaluator Very Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Very Conse and Bank of America is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank of America are associated (or correlated) with Evaluator Very. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Very Conse has no effect on the direction of Bank of America i.e., Bank of America and Evaluator Very go up and down completely randomly.
Pair Corralation between Bank of America and Evaluator Very
Considering the 90-day investment horizon Bank of America is expected to generate 4.19 times more return on investment than Evaluator Very. However, Bank of America is 4.19 times more volatile than Evaluator Very Conservative. It trades about 0.27 of its potential returns per unit of risk. Evaluator Very Conservative is currently generating about 0.1 per unit of risk. If you would invest 3,976 in Bank of America on April 29, 2025 and sell it today you would earn a total of 869.00 from holding Bank of America or generate 21.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.41% |
Values | Daily Returns |
Bank of America vs. Evaluator Very Conservative
Performance |
Timeline |
Bank of America |
Evaluator Very Conse |
Bank of America and Evaluator Very Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and Evaluator Very
The main advantage of trading using opposite Bank of America and Evaluator Very positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Evaluator Very can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Evaluator Very will offset losses from the drop in Evaluator Very's long position.Bank of America vs. JPMorgan Chase Co | Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank |
Evaluator Very vs. Vy Blackrock Inflation | Evaluator Very vs. Ab Bond Inflation | Evaluator Very vs. Vy Blackrock Inflation | Evaluator Very vs. Cref Inflation Linked Bond |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |