Correlation Between Bank of America and Franklin Double
Can any of the company-specific risk be diversified away by investing in both Bank of America and Franklin Double 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 Franklin Double 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 Franklin Double Tax Free, you can compare the effects of market volatilities on Bank of America and Franklin Double 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 Franklin Double. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Franklin Double.
Diversification Opportunities for Bank of America and Franklin Double
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Franklin Double Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Double Tax 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 Franklin Double. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Double Tax has no effect on the direction of Bank of America i.e., Bank of America and Franklin Double go up and down completely randomly.
Pair Corralation between Bank of America and Franklin Double
If you would invest 2,810 in Bank of America on September 2, 2024 and sell it today you would earn a total of 1,941 from holding Bank of America or generate 69.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. Franklin Double Tax Free
Performance |
| Timeline |
| Bank of America |
| Franklin Double Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Franklin Double Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Franklin Double
The main advantage of trading using opposite Bank of America and Franklin Double positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Franklin Double 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 Franklin Double will offset losses from the drop in Franklin Double'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. Bank of Montreal |
| Franklin Double vs. T Rowe Price | Franklin Double vs. T Rowe Price | Franklin Double vs. Qs Large Cap | Franklin Double vs. Alternative Asset Allocation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets |