Correlation Between Bank of America and Nordnet One
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Nordnet One Forsiktig, you can compare the effects of market volatilities on Bank of America and Nordnet One 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 Nordnet One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Nordnet One.
Diversification Opportunities for Bank of America and Nordnet One
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Nordnet is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Nordnet One Forsiktig in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordnet One Forsiktig 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 Nordnet One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordnet One Forsiktig has no effect on the direction of Bank of America i.e., Bank of America and Nordnet One go up and down completely randomly.
Pair Corralation between Bank of America and Nordnet One
Considering the 90-day investment horizon Bank of America is expected to generate 8.77 times more return on investment than Nordnet One. However, Bank of America is 8.77 times more volatile than Nordnet One Forsiktig. It trades about 0.32 of its potential returns per unit of risk. Nordnet One Forsiktig is currently generating about 0.26 per unit of risk. If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bank of America vs. Nordnet One Forsiktig
Performance |
| Timeline |
| Bank of America |
| Nordnet One Forsiktig |
Bank of America and Nordnet One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Nordnet One
The main advantage of trading using opposite Bank of America and Nordnet One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Nordnet One 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 Nordnet One will offset losses from the drop in Nordnet One's long position.| 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 |
| Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Dalata Hotel Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |