Correlation Between Bank of America and ALEXANDRIA
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By analyzing existing cross correlation between Bank of America and ALEXANDRIA REAL ESTATE, you can compare the effects of market volatilities on Bank of America and ALEXANDRIA 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 ALEXANDRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and ALEXANDRIA.
Diversification Opportunities for Bank of America and ALEXANDRIA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ALEXANDRIA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and ALEXANDRIA REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEXANDRIA REAL ESTATE 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 ALEXANDRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEXANDRIA REAL ESTATE has no effect on the direction of Bank of America i.e., Bank of America and ALEXANDRIA go up and down completely randomly.
Pair Corralation between Bank of America and ALEXANDRIA
Considering the 90-day investment horizon Bank of America is expected to generate 2.58 times more return on investment than ALEXANDRIA. However, Bank of America is 2.58 times more volatile than ALEXANDRIA REAL ESTATE. It trades about 0.29 of its potential returns per unit of risk. ALEXANDRIA REAL ESTATE is currently generating about -0.09 per unit of risk. If you would invest 4,231 in Bank of America on August 31, 2024 and sell it today you would earn a total of 546.00 from holding Bank of America or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of America vs. ALEXANDRIA REAL ESTATE
Performance |
| Timeline |
| Bank of America |
| ALEXANDRIA REAL ESTATE |
Bank of America and ALEXANDRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and ALEXANDRIA
The main advantage of trading using opposite Bank of America and ALEXANDRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, ALEXANDRIA 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 ALEXANDRIA will offset losses from the drop in ALEXANDRIA's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
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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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