Correlation Between Bank of America and Artisan Consumer
Can any of the company-specific risk be diversified away by investing in both Bank of America and Artisan Consumer 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 Consumer 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 Consumer Goods, you can compare the effects of market volatilities on Bank of America and Artisan Consumer 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 Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Artisan Consumer.
Diversification Opportunities for Bank of America and Artisan Consumer
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Artisan is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods 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 Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of Bank of America i.e., Bank of America and Artisan Consumer go up and down completely randomly.
Pair Corralation between Bank of America and Artisan Consumer
Considering the 90-day investment horizon Bank of America is expected to generate 0.35 times more return on investment than Artisan Consumer. However, Bank of America is 2.9 times less risky than Artisan Consumer. It trades about 0.26 of its potential returns per unit of risk. Artisan Consumer Goods is currently generating about -0.28 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 488.00 from holding Bank of America or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Artisan Consumer Goods
Performance |
| Timeline |
| Bank of America |
| Artisan Consumer Goods |
Bank of America and Artisan Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Artisan Consumer
The main advantage of trading using opposite Bank of America and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Artisan Consumer 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 Consumer will offset losses from the drop in Artisan Consumer'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 |
| Artisan Consumer vs. Ascendant Resources | Artisan Consumer vs. Cantex Mine Development | Artisan Consumer vs. Amarc Resources | Artisan Consumer vs. Sterling Metals Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |