Correlation Between Bank of America and Artisan Select
Can any of the company-specific risk be diversified away by investing in both Bank of America and Artisan Select 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 Artisan Select 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 Artisan Select Equity, you can compare the effects of market volatilities on Bank of America and Artisan Select 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 Artisan Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Artisan Select.
Diversification Opportunities for Bank of America and Artisan Select
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Artisan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Artisan Select Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Select Equity 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 Artisan Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Select Equity has no effect on the direction of Bank of America i.e., Bank of America and Artisan Select go up and down completely randomly.
Pair Corralation between Bank of America and Artisan Select
Considering the 90-day investment horizon Bank of America is expected to generate 2.2 times more return on investment than Artisan Select. However, Bank of America is 2.2 times more volatile than Artisan Select Equity. It trades about 0.1 of its potential returns per unit of risk. Artisan Select Equity is currently generating about 0.12 per unit of risk. If you would invest 2,820 in Bank of America on August 31, 2024 and sell it today you would earn a total of 1,931 from holding Bank of America or generate 68.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bank of America vs. Artisan Select Equity
Performance |
| Timeline |
| Bank of America |
| Artisan Select Equity |
Bank of America and Artisan Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Artisan Select
The main advantage of trading using opposite Bank of America and Artisan Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Artisan Select 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 Artisan Select will offset losses from the drop in Artisan Select's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| Artisan Select vs. Health Care Fund | Artisan Select vs. Tekla Healthcare Opportunities | Artisan Select vs. Health Biotchnology Portfolio | Artisan Select vs. Alphacentric Lifesci Healthcare |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |