Correlation Between Bank of America and Lupaka Gold
Can any of the company-specific risk be diversified away by investing in both Bank of America and Lupaka Gold 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 Lupaka Gold 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 Lupaka Gold Corp, you can compare the effects of market volatilities on Bank of America and Lupaka Gold 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 Lupaka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Lupaka Gold.
Diversification Opportunities for Bank of America and Lupaka Gold
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Lupaka is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Lupaka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupaka Gold 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 Lupaka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupaka Gold Corp has no effect on the direction of Bank of America i.e., Bank of America and Lupaka Gold go up and down completely randomly.
Pair Corralation between Bank of America and Lupaka Gold
If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank of America vs. Lupaka Gold Corp
Performance |
| Timeline |
| Bank of America |
| Lupaka Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Lupaka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Lupaka Gold
The main advantage of trading using opposite Bank of America and Lupaka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Lupaka Gold 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 Lupaka Gold will offset losses from the drop in Lupaka Gold'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 |
| Lupaka Gold vs. Asure Software | Lupaka Gold vs. Arrow Electronics | Lupaka Gold vs. ServiceNow | Lupaka Gold vs. Western Digital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |