Correlation Between Sun Peak and Bank of America
Can any of the company-specific risk be diversified away by investing in both Sun Peak and Bank of America 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 Sun Peak and Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Peak Metals and Bank of America, you can compare the effects of market volatilities on Sun Peak and Bank of America 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 Sun Peak with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Peak and Bank of America.
Diversification Opportunities for Sun Peak and Bank of America
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Bank is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sun Peak Metals and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America and Sun Peak 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 Sun Peak Metals are associated (or correlated) with Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Sun Peak i.e., Sun Peak and Bank of America go up and down completely randomly.
Pair Corralation between Sun Peak and Bank of America
Assuming the 90 days trading horizon Sun Peak Metals is expected to under-perform the Bank of America. In addition to that, Sun Peak is 4.06 times more volatile than Bank of America. It trades about -0.06 of its total potential returns per unit of risk. Bank of America is currently generating about -0.04 per unit of volatility. If you would invest 2,474 in Bank of America on October 28, 2024 and sell it today you would lose (57.00) from holding Bank of America or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Peak Metals vs. Bank of America
Performance |
| Timeline |
| Sun Peak Metals |
| Bank of America |
Sun Peak and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Peak and Bank of America
The main advantage of trading using opposite Sun Peak and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Peak position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| Sun Peak vs. Reyna Silver Corp | Sun Peak vs. Blackrock Silver Corp | Sun Peak vs. Torq Resources | Sun Peak vs. iShares Canadian HYBrid |
| Bank of America vs. T2 Metals Corp | Bank of America vs. Enerev5 Metals | Bank of America vs. Overactive Media Corp | Bank of America vs. Metalero Mining Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |