Correlation Between Bank of America and DBX GLBL
Can any of the company-specific risk be diversified away by investing in both Bank of America and DBX GLBL 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 DBX GLBL 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 DBX GLBL DIV, you can compare the effects of market volatilities on Bank of America and DBX GLBL 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 DBX GLBL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and DBX GLBL.
Diversification Opportunities for Bank of America and DBX GLBL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and DBX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and DBX GLBL DIV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX GLBL DIV 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 DBX GLBL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX GLBL DIV has no effect on the direction of Bank of America i.e., Bank of America and DBX GLBL go up and down completely randomly.
Pair Corralation between Bank of America and DBX GLBL
If you would invest 2,648 in Bank of America on August 31, 2024 and sell it today you would earn a total of 2,129 from holding Bank of America or generate 80.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of America vs. DBX GLBL DIV
Performance |
| Timeline |
| Bank of America |
| DBX GLBL DIV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and DBX GLBL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and DBX GLBL
The main advantage of trading using opposite Bank of America and DBX GLBL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, DBX GLBL 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 DBX GLBL will offset losses from the drop in DBX GLBL'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 |
| DBX GLBL vs. Amundi Index Solutions | DBX GLBL vs. Multi Units Luxembourg | DBX GLBL vs. iShares Digital Entertainment | DBX GLBL vs. Amundi Index Solutions |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |