Bank Long Term Debt vs Short Term Investments Analysis
| BOFA Stock | 24.88 0.12 0.48% |
Bank of America financial indicator trend analysis is way more than just evaluating Bank of America prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Bank of America is a good investment. Please check the relationship between Bank of America Long Term Debt and its Short Term Investments accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
Long Term Debt vs Short Term Investments
Long Term Debt vs Short Term Investments Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Bank of America Long Term Debt account and Short Term Investments. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Bank of America's Long Term Debt and Short Term Investments is 0.54. Overlapping area represents the amount of variation of Long Term Debt that can explain the historical movement of Short Term Investments in the same time period over historical financial statements of Bank of America, assuming nothing else is changed. The correlation between historical values of Bank of America's Long Term Debt and Short Term Investments is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Long Term Debt of Bank of America are associated (or correlated) with its Short Term Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Short Term Investments has no effect on the direction of Long Term Debt i.e., Bank of America's Long Term Debt and Short Term Investments go up and down completely randomly.
Correlation Coefficient | 0.54 |
| Relationship Direction | Positive |
| Relationship Strength | Weak |
Long Term Debt
Long-term debt is a debt that Bank of America has held for over one year. Long-term debt appears on Bank of America balance sheet and also includes long-term leases. The most common forms of long term debt are bonds payable, long-term notes payable, mortgage payable, pension liabilities, and lease liabilities. In the corporate world, long-term debt is generally used to fund big-ticket items, such as machinery, buildings, and land. The total of long-term debt reported on Bank of America balance sheet is the sum of the balances of all categories of long-term debt. Debt that is not due within the current year and is often considered to be financing activities that are to be repaid over several years.Short Term Investments
Short Term Investments is an item under the current assets section of Bank of America balance sheet. It contains any investments Bank of America undertook that will expire in less than one year. These accounts contain financial instruments such as stocks or bonds that Bank of America can easily liquidate in the marketplace.Most indicators from Bank of America's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Bank of America current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.At present, Bank of America's Selling General Administrative is projected to increase significantly based on the last few years of reporting.
| 2021 | 2022 | 2023 | 2024 (projected) | Net Interest Income | 42.9B | 52.5B | 56.9B | 53.8B | Tax Provision | 2.0B | 3.4B | 1.8B | 2.2B |
Bank of America fundamental ratios Correlations
Click cells to compare fundamentals
Bank of America Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Pair Trading with Bank of America
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bank of America position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Bank Stock
| 0.91 | RY-PS | Royal Bank Earnings Call This Week | PairCorr |
| 0.84 | RY | Royal Bank Earnings Call This Week | PairCorr |
| 0.89 | RY-PM | Royal Bank Earnings Call This Week | PairCorr |
| 0.83 | TD-PFI | Toronto Dominion Bank Earnings Call This Week | PairCorr |
Moving against Bank Stock
| 0.62 | TD | Toronto Dominion Bank Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Bank of America could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of America when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bank of America - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank of America to buy it.
The correlation of Bank of America is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bank of America moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bank of America can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.