Correlation Between Bank of America and Gotham Master
Can any of the company-specific risk be diversified away by investing in both Bank of America and Gotham Master 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 Gotham Master 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 Gotham Master Neutral, you can compare the effects of market volatilities on Bank of America and Gotham Master 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 Gotham Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Gotham Master.
Diversification Opportunities for Bank of America and Gotham Master
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Gotham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Gotham Master Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotham Master Neutral 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 Gotham Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotham Master Neutral has no effect on the direction of Bank of America i.e., Bank of America and Gotham Master go up and down completely randomly.
Pair Corralation between Bank of America and Gotham Master
If you would invest 4,455 in Bank of America on October 26, 2024 and sell it today you would earn a total of 184.00 from holding Bank of America or generate 4.13% 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. Gotham Master Neutral
Performance |
| Timeline |
| Bank of America |
| Gotham Master Neutral |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Gotham Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Gotham Master
The main advantage of trading using opposite Bank of America and Gotham Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Gotham Master 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 Gotham Master will offset losses from the drop in Gotham Master's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| Gotham Master vs. Franklin Government Money | Gotham Master vs. T Rowe Price | Gotham Master vs. Blrc Sgy Mnp | Gotham Master vs. Ab Global Bond |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |