Correlation Between Bank of America and Nocturne Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank of America and Nocturne Acquisition 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 Nocturne Acquisition 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 Nocturne Acquisition, you can compare the effects of market volatilities on Bank of America and Nocturne Acquisition 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 Nocturne Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Nocturne Acquisition.
Diversification Opportunities for Bank of America and Nocturne Acquisition
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Nocturne is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Nocturne Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nocturne Acquisition 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 Nocturne Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nocturne Acquisition has no effect on the direction of Bank of America i.e., Bank of America and Nocturne Acquisition go up and down completely randomly.
Pair Corralation between Bank of America and Nocturne Acquisition
If you would invest 4,133 in Bank of America on September 3, 2024 and sell it today you would earn a total of 618.00 from holding Bank of America or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank of America vs. Nocturne Acquisition
Performance |
| Timeline |
| Bank of America |
| Nocturne Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Nocturne Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Nocturne Acquisition
The main advantage of trading using opposite Bank of America and Nocturne Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Nocturne Acquisition 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 Nocturne Acquisition will offset losses from the drop in Nocturne Acquisition'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |