Correlation Between Bank of America and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Bank of America and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Bank of America and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Eagle Mlp.
Diversification Opportunities for Bank of America and Eagle Mlp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Eagle is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Bank of America i.e., Bank of America and Eagle Mlp go up and down completely randomly.
Pair Corralation between Bank of America and Eagle Mlp
Considering the 90-day investment horizon Bank of America is expected to generate 1.23 times less return on investment than Eagle Mlp. In addition to that, Bank of America is 2.19 times more volatile than Eagle Mlp Strategy. It trades about 0.26 of its total potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.7 per unit of volatility. If you would invest 976.00 in Eagle Mlp Strategy on August 28, 2024 and sell it today you would earn a total of 144.00 from holding Eagle Mlp Strategy or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Bank of America |
| Eagle Mlp Strategy |
Bank of America and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Eagle Mlp
The main advantage of trading using opposite Bank of America and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp'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 |
| Eagle Mlp vs. Usaa Mutual Funds | Eagle Mlp vs. Transamerica Funds | Eagle Mlp vs. T Rowe Price | Eagle Mlp vs. Legg Mason Partners |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |