Correlation Between Solid Impact and Bank of America
Can any of the company-specific risk be diversified away by investing in both Solid Impact 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 Solid Impact 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 Solid Impact Investments and Bank of America, you can compare the effects of market volatilities on Solid Impact 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 Solid Impact with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Impact and Bank of America.
Diversification Opportunities for Solid Impact and Bank of America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solid and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid Impact Investments 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 Solid Impact 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 Solid Impact Investments 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 Solid Impact i.e., Solid Impact and Bank of America go up and down completely randomly.
Pair Corralation between Solid Impact and Bank of America
If you would invest 5.00 in Solid Impact Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Solid Impact Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Impact Investments vs. Bank of America
Performance |
| Timeline |
| Solid Impact Investments |
| Bank of America |
Solid Impact and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Impact and Bank of America
The main advantage of trading using opposite Solid Impact and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Impact 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.| Solid Impact vs. Brompton Lifeco Split | Solid Impact vs. North American Financial | Solid Impact vs. Prime Dividend Corp | Solid Impact vs. Financial 15 Split |
| Bank of America vs. Quorum Information Technologies | Bank of America vs. Forsys Metals Corp | Bank of America vs. Rogers Communications | Bank of America vs. Getty Copper |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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