Correlation Between Bank of America and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Bank of America and Calvert Bond 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 Calvert Bond 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 Calvert Bond Portfolio, you can compare the effects of market volatilities on Bank of America and Calvert Bond 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 Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Calvert Bond.
Diversification Opportunities for Bank of America and Calvert Bond
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Calvert is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio 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 Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Bank of America i.e., Bank of America and Calvert Bond go up and down completely randomly.
Pair Corralation between Bank of America and Calvert Bond
Considering the 90-day investment horizon Bank of America is expected to generate 6.1 times more return on investment than Calvert Bond. However, Bank of America is 6.1 times more volatile than Calvert Bond Portfolio. It trades about 0.31 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.11 per unit of risk. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Bank of America |
| Calvert Bond Portfolio |
Bank of America and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Calvert Bond
The main advantage of trading using opposite Bank of America and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| Bank of America vs. Citigroup | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| Calvert Bond vs. Lgm Risk Managed | Calvert Bond vs. Metropolitan West High | Calvert Bond vs. Ab High Income | Calvert Bond vs. Aqr Risk Balanced Modities |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |