Correlation Between Bank of America and SOUTHLAND HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Bank of America and SOUTHLAND HOLDINGS 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 SOUTHLAND HOLDINGS 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 SOUTHLAND HOLDINGS INC, you can compare the effects of market volatilities on Bank of America and SOUTHLAND HOLDINGS 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 SOUTHLAND HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and SOUTHLAND HOLDINGS.
Diversification Opportunities for Bank of America and SOUTHLAND HOLDINGS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and SOUTHLAND is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and SOUTHLAND HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHLAND HOLDINGS INC 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 SOUTHLAND HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHLAND HOLDINGS INC has no effect on the direction of Bank of America i.e., Bank of America and SOUTHLAND HOLDINGS go up and down completely randomly.
Pair Corralation between Bank of America and SOUTHLAND HOLDINGS
If you would invest 3,968 in Bank of America on August 30, 2024 and sell it today you would earn a total of 809.00 from holding Bank of America or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. SOUTHLAND HOLDINGS INC
Performance |
| Timeline |
| Bank of America |
| SOUTHLAND HOLDINGS INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and SOUTHLAND HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and SOUTHLAND HOLDINGS
The main advantage of trading using opposite Bank of America and SOUTHLAND HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, SOUTHLAND HOLDINGS 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 SOUTHLAND HOLDINGS will offset losses from the drop in SOUTHLAND HOLDINGS's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
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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.
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