Correlation Between Bank of America and EAGLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and EAGLE MATERIALS INC, you can compare the effects of market volatilities on Bank of America and EAGLE 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 EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and EAGLE.
Diversification Opportunities for Bank of America and EAGLE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and EAGLE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EAGLE MATERIALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS INC has no effect on the direction of Bank of America i.e., Bank of America and EAGLE go up and down completely randomly.
Pair Corralation between Bank of America and EAGLE
Considering the 90-day investment horizon Bank of America is expected to generate 5.7 times more return on investment than EAGLE. However, Bank of America is 5.7 times more volatile than EAGLE MATERIALS INC. It trades about 0.21 of its potential returns per unit of risk. EAGLE MATERIALS INC is currently generating about -0.2 per unit of risk. If you would invest 4,234 in Bank of America on August 24, 2024 and sell it today you would earn a total of 412.00 from holding Bank of America or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. EAGLE MATERIALS INC
Performance |
| Timeline |
| Bank of America |
| EAGLE MATERIALS INC |
Bank of America and EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and EAGLE
The main advantage of trading using opposite Bank of America and EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, EAGLE 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 EAGLE will offset losses from the drop in EAGLE's long position.| Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. JPMorgan Chase Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |