Correlation Between Bank of America and FinTech Evolution
Can any of the company-specific risk be diversified away by investing in both Bank of America and FinTech Evolution 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 FinTech Evolution 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 FinTech Evolution Acquisition, you can compare the effects of market volatilities on Bank of America and FinTech Evolution 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 FinTech Evolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and FinTech Evolution.
Diversification Opportunities for Bank of America and FinTech Evolution
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and FinTech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and FinTech Evolution Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinTech Evolution 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 FinTech Evolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinTech Evolution has no effect on the direction of Bank of America i.e., Bank of America and FinTech Evolution go up and down completely randomly.
Pair Corralation between Bank of America and FinTech Evolution
If you would invest 4,561 in Bank of America on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Bank of America or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank of America vs. FinTech Evolution Acquisition
Performance |
| Timeline |
| Bank of America |
| FinTech Evolution |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and FinTech Evolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and FinTech Evolution
The main advantage of trading using opposite Bank of America and FinTech Evolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, FinTech Evolution 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 FinTech Evolution will offset losses from the drop in FinTech Evolution'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 |
| FinTech Evolution vs. Zijin Mining Group | FinTech Evolution vs. Getty Images Holdings | FinTech Evolution vs. Titan Machinery | FinTech Evolution vs. Summit Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |