Correlation Between Bank of America and Bimini Capital
Can any of the company-specific risk be diversified away by investing in both Bank of America and Bimini Capital 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 Bimini Capital 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 Bimini Capital Management, you can compare the effects of market volatilities on Bank of America and Bimini Capital 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 Bimini Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Bimini Capital.
Diversification Opportunities for Bank of America and Bimini Capital
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Bimini is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Bimini Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bimini Capital Management 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 Bimini Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bimini Capital Management has no effect on the direction of Bank of America i.e., Bank of America and Bimini Capital go up and down completely randomly.
Pair Corralation between Bank of America and Bimini Capital
Considering the 90-day investment horizon Bank of America is expected to generate 2.74 times less return on investment than Bimini Capital. But when comparing it to its historical volatility, Bank of America is 6.62 times less risky than Bimini Capital. It trades about 0.13 of its potential returns per unit of risk. Bimini Capital Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 89.00 in Bimini Capital Management on August 29, 2024 and sell it today you would earn a total of 19.00 from holding Bimini Capital Management or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Bimini Capital Management
Performance |
| Timeline |
| Bank of America |
| Bimini Capital Management |
Bank of America and Bimini Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Bimini Capital
The main advantage of trading using opposite Bank of America and Bimini Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Bimini Capital 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 Bimini Capital will offset losses from the drop in Bimini Capital's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| Bimini Capital vs. Elysee Development Corp | Bimini Capital vs. Azimut Holding SpA | Bimini Capital vs. Blackhawk Growth Corp | Bimini Capital vs. Ameritrans Capital 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |