Correlation Between Bank of America and WALMART
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and WALMART INC 4, you can compare the effects of market volatilities on Bank of America and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and WALMART.
Diversification Opportunities for Bank of America and WALMART
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and WALMART is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and WALMART INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 4 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 4 has no effect on the direction of Bank of America i.e., Bank of America and WALMART go up and down completely randomly.
Pair Corralation between Bank of America and WALMART
Considering the 90-day investment horizon Bank of America is expected to generate 1.31 times more return on investment than WALMART. However, Bank of America is 1.31 times more volatile than WALMART INC 4. It trades about 0.13 of its potential returns per unit of risk. WALMART INC 4 is currently generating about 0.01 per unit of risk. If you would invest 3,036 in Bank of America on August 27, 2024 and sell it today you would earn a total of 1,664 from holding Bank of America or generate 54.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Bank of America vs. WALMART INC 4
Performance |
| Timeline |
| Bank of America |
| WALMART INC 4 |
Bank of America and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and WALMART
The main advantage of trading using opposite Bank of America and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| WALMART vs. SL Green Realty | WALMART vs. Pinterest | WALMART vs. Mid Atlantic Home Health | WALMART vs. Live Ventures |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |