Bank of America Correlations

BML-PL Preferred Stock

USD 24.16 0.14 0.58%

The current 90-days correlation between Bank of America and Bank of America is 0.29 (i.e., Modest diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bank of America moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Bank of America Correlation With Market

Significant diversification

The correlation between Bank of America and DJI is 0.01 (i.e., Significant 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.

The ability to find closely correlated positions to Bank of America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of America when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bank of America - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank of America to buy it.

Moving together with Bank Preferred Stock

0.8	BK	Bank of New York Fiscal Year End 10th of January 2025	Pair Corr
0.91	CM	Canadian Imperial Bank Fiscal Year End 5th of December 2024	Pair Corr
0.81	RY	Royal Bank Fiscal Year End 5th of December 2024	Pair Corr
0.84	BML-PG	Bank of America	Pair Corr
0.94	BML-PH	Bank of America	Pair Corr
0.9	BML-PJ	Bank of America	Pair Corr
0.75	BMO	Bank of Montreal Fiscal Year End 6th of December 2024	Pair Corr
0.89	BNS	Bank of Nova Scotia Normal Trading	Pair Corr
0.83	JPM-PC	JPMorgan Chase	Pair Corr
0.8	JPM-PD	JPMorgan Chase	Pair Corr
0.65	HSBC	HSBC Holdings PLC	Pair Corr
0.83	BAC-PB	Bank of America	Pair Corr
0.91	BAC-PE	Bank of America	Pair Corr
0.81	BAC-PK	Bank of America	Pair Corr
0.73	C-PN	Citigroup Capital XIII	Pair Corr

Moving against Bank Preferred Stock

0.42

ING

ING Group NV

Pair Corr

Related Correlations Analysis

	BML-PG	WFC-PY	CICHF	BAC-PE	BAC-PB	BML-PH	BAC-PS	WFC-PC
BML-PG		0.71	0.5	0.83	0.68	0.9	0.32	0.17	BML-PG
WFC-PY	0.71		0.69	0.77	0.6	0.82	0.52	0.32	WFC-PY
CICHF	0.5	0.69		0.38	0.25	0.51	0.1	-0.05	CICHF
BAC-PE	0.83	0.77	0.38		0.82	0.89	0.4	0.23	BAC-PE
BAC-PB	0.68	0.6	0.25	0.82		0.77	0.13	0.0	BAC-PB
BML-PH	0.9	0.82	0.51	0.89	0.77		0.45	0.28	BML-PH
BAC-PS	0.32	0.52	0.1	0.4	0.13	0.45		0.96	BAC-PS
WFC-PC	0.17	0.32	-0.05	0.23	0.0	0.28	0.96		WFC-PC
	BML-PG	WFC-PY	CICHF	BAC-PE	BAC-PB	BML-PH	BAC-PS	WFC-PC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WFC-PC	+ 0.96	BAC-PS
BML-PH	+ 0.9	BML-PG
BML-PH	+ 0.89	BAC-PE
BAC-PE	+ 0.83	BML-PG
BML-PH	+ 0.82	WFC-PY
BAC-PB	+ 0.82	BAC-PE

High negative correlations

WFC-PC	- 0.05	CICHF
WFC-PC	- 0.0	BAC-PB

Risk-Adjusted Indicators

There is a big difference between Bank Preferred 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
BML-PG	0.41	0.05	(0.07)	(0.20)	0.51	(0.42)	0.97	(1.00)	2.56
WFC-PY	0.31	0.04	(0.10)	16.70	0.25	(0.37)	0.71	(0.60)	1.97
CICHF	1.48	0.08	0.00	(1.16)	2.17	(3.56)	4.05	(3.90)	17.79
BAC-PE	0.37	0.01	(0.12)	(0.60)	0.51	(0.38)	0.71	(0.83)	2.60
BAC-PB	0.23	0.01	(0.22)	0.53	0.28	(0.24)	0.48	(0.40)	1.76
BML-PH	0.48	0.06	(0.03)	(0.89)	0.66	(0.47)	0.96	(0.80)	3.42
BAC-PS	0.63	(0.03)	0.00	(0.37)	0.00	0.00	1.04	(1.51)	4.10
WFC-PC	0.60	(0.05)	0.00	(0.34)	0.00	0.00	1.18	(1.47)	3.45

Be your own money manager

Our tools can tell you how much better you can do entering a position in Bank of America without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Bank of America Corporate Management

Rudolf Bless	Chief Officer	Profile
Aditya Bhasin	Chief Officer	Profile
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