Correlation Between Bank of America and Wp Income
Can any of the company-specific risk be diversified away by investing in both Bank of America and Wp Income 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 Wp Income 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 Wp Income Plus, you can compare the effects of market volatilities on Bank of America and Wp Income 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 Wp Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Wp Income.
Diversification Opportunities for Bank of America and Wp Income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and WPINX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Wp Income Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wp Income Plus 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 Wp Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wp Income Plus has no effect on the direction of Bank of America i.e., Bank of America and Wp Income go up and down completely randomly.
Pair Corralation between Bank of America and Wp Income
If you would invest 3,115 in Bank of America on September 3, 2024 and sell it today you would earn a total of 1,636 from holding Bank of America or generate 52.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.61% |
| Values | Daily Returns |
Bank of America vs. Wp Income Plus
Performance |
| Timeline |
| Bank of America |
| Wp Income Plus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Wp Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Wp Income
The main advantage of trading using opposite Bank of America and Wp Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Wp Income 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 Wp Income will offset losses from the drop in Wp Income's long position.| Bank of America vs. Partner Communications | Bank of America vs. Merck Company | Bank of America vs. Western Midstream Partners | Bank of America vs. Edgewise Therapeutics |
| Wp Income vs. Europac Gold Fund | Wp Income vs. Goldman Sachs Short | Wp Income vs. Gabelli Gold Fund | Wp Income vs. Oppenheimer Gold Special |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |