Correlation Between Bank of America and Edgepoint Cdn
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By analyzing existing cross correlation between Bank of America and Edgepoint Cdn Growth, you can compare the effects of market volatilities on Bank of America and Edgepoint Cdn 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 Edgepoint Cdn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Edgepoint Cdn.
Diversification Opportunities for Bank of America and Edgepoint Cdn
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Edgepoint is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Edgepoint Cdn Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Cdn Growth 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 Edgepoint Cdn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Cdn Growth has no effect on the direction of Bank of America i.e., Bank of America and Edgepoint Cdn go up and down completely randomly.
Pair Corralation between Bank of America and Edgepoint Cdn
Considering the 90-day investment horizon Bank of America is expected to generate 3.24 times more return on investment than Edgepoint Cdn. However, Bank of America is 3.24 times more volatile than Edgepoint Cdn Growth. It trades about 0.05 of its potential returns per unit of risk. Edgepoint Cdn Growth is currently generating about 0.09 per unit of risk. If you would invest 3,278 in Bank of America on August 26, 2024 and sell it today you would earn a total of 1,422 from holding Bank of America or generate 43.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.19% |
| Values | Daily Returns |
Bank of America vs. Edgepoint Cdn Growth
Performance |
| Timeline |
| Bank of America |
| Edgepoint Cdn Growth |
Bank of America and Edgepoint Cdn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Edgepoint Cdn
The main advantage of trading using opposite Bank of America and Edgepoint Cdn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Edgepoint Cdn 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 Edgepoint Cdn will offset losses from the drop in Edgepoint Cdn's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Edgepoint Cdn vs. RBC Select Balanced | Edgepoint Cdn vs. RBC Portefeuille de | Edgepoint Cdn vs. TD Comfort Balanced | Edgepoint Cdn vs. RBC Global Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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