Correlation Between Bank of America and Bonus BioGroup
Can any of the company-specific risk be diversified away by investing in both Bank of America and Bonus BioGroup 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 Bonus BioGroup 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 Bonus BioGroup, you can compare the effects of market volatilities on Bank of America and Bonus BioGroup 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 Bonus BioGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Bonus BioGroup.
Diversification Opportunities for Bank of America and Bonus BioGroup
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Bonus is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Bonus BioGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus BioGroup 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 Bonus BioGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonus BioGroup has no effect on the direction of Bank of America i.e., Bank of America and Bonus BioGroup go up and down completely randomly.
Pair Corralation between Bank of America and Bonus BioGroup
If you would invest 4,561 in Bank of America on September 13, 2024 and sell it today you would earn a total of 61.50 from holding Bank of America or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Bonus BioGroup
Performance |
| Timeline |
| Bank of America |
| Bonus BioGroup |
Bank of America and Bonus BioGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Bonus BioGroup
The main advantage of trading using opposite Bank of America and Bonus BioGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Bonus BioGroup 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 Bonus BioGroup will offset losses from the drop in Bonus BioGroup'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. Canadian Imperial Bank |
| Bonus BioGroup vs. Sino Biopharmaceutical Ltd | Bonus BioGroup vs. Defence Therapeutics | Bonus BioGroup vs. Aileron Therapeutics | Bonus BioGroup vs. Enlivex Therapeutics |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| 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 |