Correlation Between Alkame Holdings and Bank of America
Can any of the company-specific risk be diversified away by investing in both Alkame Holdings and Bank of America 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 Alkame Holdings and Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkame Holdings and Bank of America, you can compare the effects of market volatilities on Alkame Holdings and Bank of America 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 Alkame Holdings with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkame Holdings and Bank of America.
Diversification Opportunities for Alkame Holdings and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alkame and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alkame Holdings and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America and Alkame Holdings 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 Alkame Holdings are associated (or correlated) with Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Alkame Holdings i.e., Alkame Holdings and Bank of America go up and down completely randomly.
Pair Corralation between Alkame Holdings and Bank of America
Given the investment horizon of 90 days Alkame Holdings is expected to under-perform the Bank of America. In addition to that, Alkame Holdings is 24.93 times more volatile than Bank of America. It trades about -0.22 of its total potential returns per unit of risk. Bank of America is currently generating about 0.07 per unit of volatility. If you would invest 4,561 in Bank of America on September 13, 2024 and sell it today you would earn a total of 61.50 from holding Bank of America or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alkame Holdings vs. Bank of America
Performance |
| Timeline |
| Alkame Holdings |
| Bank of America |
Alkame Holdings and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkame Holdings and Bank of America
The main advantage of trading using opposite Alkame Holdings and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkame Holdings position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| Alkame Holdings vs. V Group | Alkame Holdings vs. Fbec Worldwide | Alkame Holdings vs. Hiru Corporation | Alkame Holdings vs. Bank of America |
| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |