Correlation Between Bank of America and Atos Origin
Can any of the company-specific risk be diversified away by investing in both Bank of America and Atos Origin 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 Atos Origin 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 Atos Origin SA, you can compare the effects of market volatilities on Bank of America and Atos Origin 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 Atos Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Atos Origin.
Diversification Opportunities for Bank of America and Atos Origin
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Atos is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA 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 Atos Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of Bank of America i.e., Bank of America and Atos Origin go up and down completely randomly.
Pair Corralation between Bank of America and Atos Origin
Considering the 90-day investment horizon Bank of America is expected to generate 0.54 times more return on investment than Atos Origin. However, Bank of America is 1.85 times less risky than Atos Origin. It trades about 0.24 of its potential returns per unit of risk. Atos Origin SA is currently generating about 0.02 per unit of risk. If you would invest 4,262 in Bank of America on August 27, 2024 and sell it today you would earn a total of 438.00 from holding Bank of America or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Atos Origin SA
Performance |
| Timeline |
| Bank of America |
| Atos Origin SA |
Bank of America and Atos Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Atos Origin
The main advantage of trading using opposite Bank of America and Atos Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Atos Origin 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 Atos Origin will offset losses from the drop in Atos Origin's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal | Bank of America vs. Bank of Nova |
| Atos Origin vs. Two Hands Corp | Atos Origin vs. Visium Technologies | Atos Origin vs. Tautachrome | Atos Origin vs. V 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |