Correlation Between Bank of America and Janus Global
Can any of the company-specific risk be diversified away by investing in both Bank of America and Janus Global 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 Janus Global 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 Janus Global Bond, you can compare the effects of market volatilities on Bank of America and Janus Global 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 Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Janus Global.
Diversification Opportunities for Bank of America and Janus Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Janus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Janus Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Bond 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Bond has no effect on the direction of Bank of America i.e., Bank of America and Janus Global go up and down completely randomly.
Pair Corralation between Bank of America and Janus Global
Considering the 90-day investment horizon Bank of America is expected to generate 3.0 times more return on investment than Janus Global. However, Bank of America is 3.0 times more volatile than Janus Global Bond. It trades about 0.06 of its potential returns per unit of risk. Janus Global Bond is currently generating about -0.01 per unit of risk. If you would invest 3,115 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,589 from holding Bank of America or generate 51.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Bank of America vs. Janus Global Bond
Performance |
| Timeline |
| Bank of America |
| Janus Global Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Janus Global
The main advantage of trading using opposite Bank of America and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Janus Global 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 Janus Global will offset losses from the drop in Janus Global's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| Janus Global vs. Transamerica Funds | Janus Global vs. Blackrock Exchange Portfolio | Janus Global vs. Schwab Treasury Money | Janus Global vs. Prudential Government Money |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |