Correlation Between Bank of America and Elevation Series
Can any of the company-specific risk be diversified away by investing in both Bank of America and Elevation Series 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 Elevation Series 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 Elevation Series Trust, you can compare the effects of market volatilities on Bank of America and Elevation Series 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 Elevation Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Elevation Series.
Diversification Opportunities for Bank of America and Elevation Series
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Elevation is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Elevation Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Series Trust 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 Elevation Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Series Trust has no effect on the direction of Bank of America i.e., Bank of America and Elevation Series go up and down completely randomly.
Pair Corralation between Bank of America and Elevation Series
Considering the 90-day investment horizon Bank of America is expected to generate 1.13 times less return on investment than Elevation Series. In addition to that, Bank of America is 1.56 times more volatile than Elevation Series Trust. It trades about 0.14 of its total potential returns per unit of risk. Elevation Series Trust is currently generating about 0.24 per unit of volatility. If you would invest 3,740 in Elevation Series Trust on November 9, 2024 and sell it today you would earn a total of 129.00 from holding Elevation Series Trust or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Bank of America vs. Elevation Series Trust
Performance |
| Timeline |
| Bank of America |
| Elevation Series Trust |
Bank of America and Elevation Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Elevation Series
The main advantage of trading using opposite Bank of America and Elevation Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Elevation Series 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 Elevation Series will offset losses from the drop in Elevation Series' 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 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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