Correlation Between SVB Financial and Bank of America
Can any of the company-specific risk be diversified away by investing in both SVB Financial 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 SVB Financial 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 SVB Financial Group and Bank of America, you can compare the effects of market volatilities on SVB Financial 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 SVB Financial with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Bank of America.
Diversification Opportunities for SVB Financial and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group 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 SVB Financial 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 SVB Financial Group 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 SVB Financial i.e., SVB Financial and Bank of America go up and down completely randomly.
Pair Corralation between SVB Financial and Bank of America
If you would invest 12,007 in SVB Financial Group on November 4, 2024 and sell it today you would earn a total of 0.00 from holding SVB Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SVB Financial Group vs. Bank of America
Performance |
| Timeline |
| SVB Financial Group |
| Bank of America |
SVB Financial and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Bank of America
The main advantage of trading using opposite SVB Financial and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial 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.| SVB Financial vs. United Rentals | SVB Financial vs. Discover Financial Services | SVB Financial vs. Darden Restaurants, | SVB Financial vs. Sumitomo Mitsui Financial |
| Bank of America vs. SK Telecom Co, | Bank of America vs. Citizens Financial Group, | Bank of America vs. Jefferies Financial Group | Bank of America vs. Eastman Chemical |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |