Correlation Between Bank of America and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both Bank of America and 60 Degrees 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 60 Degrees 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 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on Bank of America and 60 Degrees 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 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and 60 Degrees.
Diversification Opportunities for Bank of America and 60 Degrees
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and SXTPW is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu 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 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of Bank of America i.e., Bank of America and 60 Degrees go up and down completely randomly.
Pair Corralation between Bank of America and 60 Degrees
Considering the 90-day investment horizon Bank of America is expected to generate 79.64 times less return on investment than 60 Degrees. But when comparing it to its historical volatility, Bank of America is 49.5 times less risky than 60 Degrees. It trades about 0.06 of its potential returns per unit of risk. 60 Degrees Pharmaceuticals, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in 60 Degrees Pharmaceuticals, on August 29, 2024 and sell it today you would earn a total of 2.00 from holding 60 Degrees Pharmaceuticals, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 43.03% |
| Values | Daily Returns |
Bank of America vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| Bank of America |
| 60 Degrees Pharmaceu |
Bank of America and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and 60 Degrees
The main advantage of trading using opposite Bank of America and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| 60 Degrees vs. Eliem Therapeutics | 60 Degrees vs. Scpharmaceuticals | 60 Degrees vs. Milestone Pharmaceuticals | 60 Degrees vs. Seres 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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