Correlation Between Bank of America and IM Cannabis
Can any of the company-specific risk be diversified away by investing in both Bank of America and IM Cannabis 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 IM Cannabis 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 IM Cannabis Corp, you can compare the effects of market volatilities on Bank of America and IM Cannabis 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 IM Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and IM Cannabis.
Diversification Opportunities for Bank of America and IM Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and IMCND is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and IM Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IM Cannabis Corp 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 IM Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IM Cannabis Corp has no effect on the direction of Bank of America i.e., Bank of America and IM Cannabis go up and down completely randomly.
Pair Corralation between Bank of America and IM Cannabis
If you would invest 4,438 in Bank of America on October 25, 2024 and sell it today you would earn a total of 201.00 from holding Bank of America or generate 4.53% 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. IM Cannabis Corp
Performance |
| Timeline |
| Bank of America |
| IM Cannabis Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and IM Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and IM Cannabis
The main advantage of trading using opposite Bank of America and IM Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, IM Cannabis 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 IM Cannabis will offset losses from the drop in IM Cannabis' long position.| Bank of America vs. JPMorgan Chase Co | Bank of America vs. Bank of America | Bank of America vs. RLJ Lodging Trust | Bank of America vs. PennyMac Finl Svcs |
| IM Cannabis vs. Definitive Healthcare Corp | IM Cannabis vs. Asure Software | IM Cannabis vs. FactSet Research Systems | IM Cannabis vs. Commonwealth Bank of |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |