Correlation Between Bank of America and IShares Euro
Can any of the company-specific risk be diversified away by investing in both Bank of America and IShares Euro 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 Euro 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 Euro Government, you can compare the effects of market volatilities on Bank of America and IShares Euro 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 Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and IShares Euro.
Diversification Opportunities for Bank of America and IShares Euro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and IShares Euro Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Euro Government 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 Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Euro Government has no effect on the direction of Bank of America i.e., Bank of America and IShares Euro go up and down completely randomly.
Pair Corralation between Bank of America and IShares Euro
If you would invest 4,176 in Bank of America on September 2, 2024 and sell it today you would earn a total of 575.00 from holding Bank of America or generate 13.77% 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. IShares Euro Government
Performance |
| Timeline |
| Bank of America |
| IShares Euro Government |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and IShares Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and IShares Euro
The main advantage of trading using opposite Bank of America and IShares Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, IShares Euro 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 Euro will offset losses from the drop in IShares Euro'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 Euro vs. iShares MSCI Japan | IShares Euro vs. iShares JP Morgan | IShares Euro vs. iShares MSCI Europe | IShares Euro vs. iShares Nasdaq Biotechnology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |