Correlation Between Bank of America and Maxi Renda
Can any of the company-specific risk be diversified away by investing in both Bank of America and Maxi Renda 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 Maxi Renda 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 Maxi Renda Fundo, you can compare the effects of market volatilities on Bank of America and Maxi Renda 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 Maxi Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Maxi Renda.
Diversification Opportunities for Bank of America and Maxi Renda
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Maxi is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Maxi Renda Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxi Renda Fundo 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 Maxi Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxi Renda Fundo has no effect on the direction of Bank of America i.e., Bank of America and Maxi Renda go up and down completely randomly.
Pair Corralation between Bank of America and Maxi Renda
If you would invest 4,253 in Bank of America on August 30, 2024 and sell it today you would earn a total of 524.00 from holding Bank of America or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank of America vs. Maxi Renda Fundo
Performance |
| Timeline |
| Bank of America |
| Maxi Renda Fundo |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Maxi Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Maxi Renda
The main advantage of trading using opposite Bank of America and Maxi Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Maxi Renda 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 Maxi Renda will offset losses from the drop in Maxi Renda's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
| Maxi Renda vs. Domo Fundo de | Maxi Renda vs. Ourinvest Jpp Fundo | Maxi Renda vs. Loft II Fundo | Maxi Renda vs. Kinea Hedge Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |