Correlation Between Bank of America and ProMIS Neurosciences
Can any of the company-specific risk be diversified away by investing in both Bank of America and ProMIS Neurosciences 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 ProMIS Neurosciences 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 ProMIS Neurosciences, you can compare the effects of market volatilities on Bank of America and ProMIS Neurosciences 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 ProMIS Neurosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ProMIS Neurosciences.
Diversification Opportunities for Bank of America and ProMIS Neurosciences
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ProMIS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ProMIS Neurosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProMIS Neurosciences 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 ProMIS Neurosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProMIS Neurosciences has no effect on the direction of Bank of America i.e., Bank of America and ProMIS Neurosciences go up and down completely randomly.
Pair Corralation between Bank of America and ProMIS Neurosciences
Considering the 90-day investment horizon Bank of America is expected to generate 0.44 times more return on investment than ProMIS Neurosciences. However, Bank of America is 2.27 times less risky than ProMIS Neurosciences. It trades about 0.31 of its potential returns per unit of risk. ProMIS Neurosciences is currently generating about -0.29 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. ProMIS Neurosciences
Performance |
| Timeline |
| Bank of America |
| ProMIS Neurosciences |
Bank of America and ProMIS Neurosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ProMIS Neurosciences
The main advantage of trading using opposite Bank of America and ProMIS Neurosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ProMIS Neurosciences 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 ProMIS Neurosciences will offset losses from the drop in ProMIS Neurosciences' long position.| Bank of America vs. Citigroup | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| ProMIS Neurosciences vs. Tff Pharmaceuticals | ProMIS Neurosciences vs. Eliem Therapeutics | ProMIS Neurosciences vs. Inhibrx | ProMIS Neurosciences vs. Enliven 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |