Correlation Between Bank of America and Tubacex SA
Can any of the company-specific risk be diversified away by investing in both Bank of America and Tubacex SA 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 Tubacex SA 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 Tubacex SA, you can compare the effects of market volatilities on Bank of America and Tubacex SA 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 Tubacex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Tubacex SA.
Diversification Opportunities for Bank of America and Tubacex SA
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Tubacex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Tubacex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tubacex SA 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 Tubacex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tubacex SA has no effect on the direction of Bank of America i.e., Bank of America and Tubacex SA go up and down completely randomly.
Pair Corralation between Bank of America and Tubacex SA
If you would invest 4,265 in Bank of America on August 25, 2024 and sell it today you would earn a total of 435.00 from holding Bank of America or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank of America vs. Tubacex SA
Performance |
| Timeline |
| Bank of America |
| Tubacex SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Bank of America and Tubacex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Tubacex SA
The main advantage of trading using opposite Bank of America and Tubacex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Tubacex SA 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 Tubacex SA will offset losses from the drop in Tubacex SA's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC |
| Tubacex SA vs. Techo Hogar SOCIMI, | Tubacex SA vs. Bankinter | Tubacex SA vs. Parlem Telecom Companyia | Tubacex SA vs. Caixabank SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |