Correlation Between Bank of America and IShares Asia
Can any of the company-specific risk be diversified away by investing in both Bank of America and IShares Asia 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 IShares Asia 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 iShares Asia Property, you can compare the effects of market volatilities on Bank of America and IShares Asia 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 IShares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and IShares Asia.
Diversification Opportunities for Bank of America and IShares Asia
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and IShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and iShares Asia Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Asia Property 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 IShares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Asia Property has no effect on the direction of Bank of America i.e., Bank of America and IShares Asia go up and down completely randomly.
Pair Corralation between Bank of America and IShares Asia
Considering the 90-day investment horizon Bank of America is expected to generate 2.03 times more return on investment than IShares Asia. However, Bank of America is 2.03 times more volatile than iShares Asia Property. It trades about 0.1 of its potential returns per unit of risk. iShares Asia Property is currently generating about 0.06 per unit of risk. If you would invest 3,938 in Bank of America on September 1, 2024 and sell it today you would earn a total of 813.00 from holding Bank of America or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.18% |
| Values | Daily Returns |
Bank of America vs. iShares Asia Property
Performance |
| Timeline |
| Bank of America |
| iShares Asia Property |
Bank of America and IShares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and IShares Asia
The main advantage of trading using opposite Bank of America and IShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, IShares Asia 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 IShares Asia will offset losses from the drop in IShares Asia'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 |
| IShares Asia vs. iShares Core MSCI | IShares Asia vs. BlackRock ESG Multi Asset | IShares Asia vs. Pershing Square Holdings | IShares Asia vs. ASML Holding NV |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |