Bank of America Downside Variance
| BAC Stock | | | EUR 40.59 0.09 0.22% |
Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target. Below is Bank of America's current Downside Variance with peer comparisons and related risk metrics.
Current Downside Variance Value
Bank of America carries a Downside Variance of 2.18, consistent with moderate price variability. This places Bank of America within the typical volatility range for Diversified Metals & Mining.
Downside Variance | = | SUM(RET DEV)2N(ER) |
| = | 2.18 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Downside Variance Peers Comparison
The peer group averages 16.67 for Downside Variance, with Bank of America at 2.18 falling below that level. Readings span 3.22 (BlackRock Institutional Pooled) to 27.07 (IBIDEN). Bank of America has exhibited less price dispersion than the peer average over the measured period.
Downside Variance Relative To Other Indicators
The chart below plots Downside Variance against Maximum Drawdown for Bank of America and its peers. Each point represents one equity — position along the horizontal axis shows Downside Variance while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Comparing Downside Variance (
2.18 ) to Maximum Drawdown (
14.83 ) for Bank of America yields a
6.81 multiple. This indicates Maximum Drawdown substantially exceeds Downside Variance for Bank of America.
Methodology, Assumptions & Data Sources
Bank of America has a current Downside Variance reading of 2.18. Bank of America's Downside Variance is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Bank of America operates in the materials sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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