Correlation Between Bank of America and Softlogic Life
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By analyzing existing cross correlation between Bank of America and Softlogic Life Insurance, you can compare the effects of market volatilities on Bank of America and Softlogic Life 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 Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Softlogic Life.
Diversification Opportunities for Bank of America and Softlogic Life
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Softlogic is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance 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 Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Bank of America i.e., Bank of America and Softlogic Life go up and down completely randomly.
Pair Corralation between Bank of America and Softlogic Life
Considering the 90-day investment horizon Bank of America is expected to generate 1.25 times more return on investment than Softlogic Life. However, Bank of America is 1.25 times more volatile than Softlogic Life Insurance. It trades about 0.32 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.08 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 | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of America vs. Softlogic Life Insurance
Performance |
| Timeline |
| Bank of America |
| Softlogic Life Insurance |
Bank of America and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Softlogic Life
The main advantage of trading using opposite Bank of America and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life'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 |
| Softlogic Life vs. Prime Lands Residencies | Softlogic Life vs. Lanka Credit and | Softlogic Life vs. VIDULLANKA PLC | Softlogic Life vs. EX PACK RUGATED CARTONS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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