Correlation Between Bank of America and VictoryShares WestEnd
Can any of the company-specific risk be diversified away by investing in both Bank of America and VictoryShares WestEnd 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 VictoryShares WestEnd 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 VictoryShares WestEnd Economic, you can compare the effects of market volatilities on Bank of America and VictoryShares WestEnd 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 VictoryShares WestEnd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and VictoryShares WestEnd.
Diversification Opportunities for Bank of America and VictoryShares WestEnd
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and VictoryShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and VictoryShares WestEnd Economic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VictoryShares WestEnd 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 VictoryShares WestEnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VictoryShares WestEnd has no effect on the direction of Bank of America i.e., Bank of America and VictoryShares WestEnd go up and down completely randomly.
Pair Corralation between Bank of America and VictoryShares WestEnd
Considering the 90-day investment horizon Bank of America is expected to generate 4.27 times more return on investment than VictoryShares WestEnd. However, Bank of America is 4.27 times more volatile than VictoryShares WestEnd Economic. It trades about 0.04 of its potential returns per unit of risk. VictoryShares WestEnd Economic is currently generating about 0.02 per unit of risk. If you would invest 2,728 in Bank of America on January 14, 2025 and sell it today you would earn a total of 961.00 from holding Bank of America or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 41.13% |
| Values | Daily Returns |
Bank of America vs. VictoryShares WestEnd Economic
Performance |
| Timeline |
| Bank of America |
| VictoryShares WestEnd |
Bank of America and VictoryShares WestEnd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and VictoryShares WestEnd
The main advantage of trading using opposite Bank of America and VictoryShares WestEnd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, VictoryShares WestEnd 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 VictoryShares WestEnd will offset losses from the drop in VictoryShares WestEnd'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 |
| VictoryShares WestEnd vs. Valued Advisers Trust | VictoryShares WestEnd vs. Columbia Diversified Fixed | VictoryShares WestEnd vs. Principal Exchange Traded Funds | VictoryShares WestEnd vs. MFS Active Core |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |