Correlation Between Bank of America and Linewell Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and Linewell Software Co, you can compare the effects of market volatilities on Bank of America and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Linewell Software.
Diversification Opportunities for Bank of America and Linewell Software
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Linewell is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Bank of America i.e., Bank of America and Linewell Software go up and down completely randomly.
Pair Corralation between Bank of America and Linewell Software
Considering the 90-day investment horizon Bank of America is expected to generate 0.42 times more return on investment than Linewell Software. However, Bank of America is 2.37 times less risky than Linewell Software. It trades about 0.14 of its potential returns per unit of risk. Linewell Software Co is currently generating about -0.01 per unit of risk. If you would invest 2,873 in Bank of America on August 24, 2024 and sell it today you would earn a total of 1,836 from holding Bank of America or generate 63.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.6% |
| Values | Daily Returns |
Bank of America vs. Linewell Software Co
Performance |
| Timeline |
| Bank of America |
| Linewell Software |
Bank of America and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Linewell Software
The main advantage of trading using opposite Bank of America and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Bank of America vs. Amtech Systems | Bank of America vs. Gold Fields Ltd | Bank of America vs. Aegean Airlines SA | Bank of America vs. Merck Company |
| Linewell Software vs. Ming Yang Smart | Linewell Software vs. 159005 | Linewell Software vs. Loctek Ergonomic Technology | Linewell Software vs. Xiamen East Asia |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges |