Correlation Between Bank of America and Win Win
Can any of the company-specific risk be diversified away by investing in both Bank of America and Win Win 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 Win Win 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 Win Win Precision, you can compare the effects of market volatilities on Bank of America and Win Win 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 Win Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Win Win.
Diversification Opportunities for Bank of America and Win Win
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Win is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Win Win Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Win Win Precision 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 Win Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Win Win Precision has no effect on the direction of Bank of America i.e., Bank of America and Win Win go up and down completely randomly.
Pair Corralation between Bank of America and Win Win
If you would invest 4,253 in Bank of America on August 30, 2024 and sell it today you would earn a total of 524.00 from holding Bank of America or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. Win Win Precision
Performance |
| Timeline |
| Bank of America |
| Win Win Precision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Win Win Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Win Win
The main advantage of trading using opposite Bank of America and Win Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Win Win 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 Win Win will offset losses from the drop in Win Win's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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