Correlation Between Bank of America and Emova Group
Can any of the company-specific risk be diversified away by investing in both Bank of America and Emova Group 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 Emova Group 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 Emova Group SA, you can compare the effects of market volatilities on Bank of America and Emova Group 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 Emova Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Emova Group.
Diversification Opportunities for Bank of America and Emova Group
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Emova is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Emova Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emova Group 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 Emova Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emova Group SA has no effect on the direction of Bank of America i.e., Bank of America and Emova Group go up and down completely randomly.
Pair Corralation between Bank of America and Emova Group
Considering the 90-day investment horizon Bank of America is expected to generate 0.56 times more return on investment than Emova Group. However, Bank of America is 1.79 times less risky than Emova Group. It trades about 0.1 of its potential returns per unit of risk. Emova Group SA is currently generating about -0.03 per unit of risk. If you would invest 4,391 in Bank of America on November 30, 2024 and sell it today you would earn a total of 219.00 from holding Bank of America or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.18% |
| Values | Daily Returns |
Bank of America vs. Emova Group SA
Performance |
| Timeline |
| Bank of America |
| Emova Group SA |
Bank of America and Emova Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Emova Group
The main advantage of trading using opposite Bank of America and Emova Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Emova Group 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 Emova Group will offset losses from the drop in Emova Group's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| Emova Group vs. Claranova SE | Emova Group vs. Nextedia | Emova Group vs. Acheter Louer | Emova Group vs. Groupe Sfpi |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |