Bank Of America Preferred Stock Market Value
| BAC-PQ Preferred Stock | USD 18.76 0.17 0.91% |
| Symbol | Bank |
Bank of America 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Bank of America's preferred stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Bank of America.
| 12/02/2022 |
| 11/21/2024 |
If you would invest 0.00 in Bank of America on December 2, 2022 and sell it all today you would earn a total of 0.00 from holding Bank of America or generate 0.0% return on investment in Bank of America over 720 days. Bank of America is related to or competes with Bank of America, JPMorgan Chase, Wells Fargo, JPMorgan Chase, and Bank of America. Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individu... More
Bank of America Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Bank of America's preferred stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Bank of America upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 4.76 | |||
| Value At Risk | (1.55) | |||
| Potential Upside | 1.16 |
Bank of America Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Bank of America's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Bank of America's standard deviation. In reality, there are many statistical measures that can use Bank of America historical prices to predict the future Bank of America's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.14) | |||
| Treynor Ratio | (4.16) |
Bank of America Backtested Returns
Bank of America secures Sharpe Ratio (or Efficiency) of -0.0397, which signifies that the company had a -0.0397% return per unit of risk over the last 3 months. Bank of America exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Bank of America's Standard Deviation of 0.8747, mean deviation of 0.6397, and Risk Adjusted Performance of (0.03) to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.0102, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Bank of America's returns are expected to increase less than the market. However, during the bear market, the loss of holding Bank of America is expected to be smaller as well. At this point, Bank of America has a negative expected return of -0.0349%. Please make sure to confirm Bank of America's treynor ratio, skewness, rate of daily change, as well as the relationship between the value at risk and accumulation distribution , to decide if Bank of America performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.39 |
Poor reverse predictability
Bank of America has poor reverse predictability. Overlapping area represents the amount of predictability between Bank of America time series from 2nd of December 2022 to 27th of November 2023 and 27th of November 2023 to 21st of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Bank of America price movement. The serial correlation of -0.39 indicates that just about 39.0% of current Bank of America price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.39 | |
| Spearman Rank Test | -0.17 | |
| Residual Average | 0.0 | |
| Price Variance | 0.72 |
Bank of America lagged returns against current returns
Autocorrelation, which is Bank of America preferred stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Bank of America's preferred stock expected returns. We can calculate the autocorrelation of Bank of America returns to help us make a trade decision. For example, suppose you find that Bank of America has exhibited high autocorrelation historically, and you observe that the preferred stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Bank of America regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Bank of America preferred stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Bank of America preferred stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Bank of America preferred stock over time.
Current vs Lagged Prices |
| Timeline |
Bank of America Lagged Returns
When evaluating Bank of America's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Bank of America preferred stock have on its future price. Bank of America autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Bank of America autocorrelation shows the relationship between Bank of America preferred stock current value and its past values and can show if there is a momentum factor associated with investing in Bank of America.
Regressed Prices |
| Timeline |
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 Preferred Stock
| 0.73 | TD | Toronto Dominion Bank Sell-off Trend | PairCorr |
Moving against Bank Preferred Stock
| 0.73 | JPM | JPMorgan Chase Fiscal Year End 10th of January 2025 | PairCorr |
| 0.66 | WFC | Wells Fargo Aggressive Push | PairCorr |
| 0.58 | BAC | Bank of America Aggressive Push | PairCorr |
| 0.57 | NWG | Natwest Group PLC | PairCorr |
| 0.55 | C | Citigroup Aggressive Push | 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.Additional Tools for Bank Preferred Stock Analysis
When running Bank of America's price analysis, check to measure Bank of America's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bank of America is operating at the current time. Most of Bank of America's value examination focuses on studying past and present price action to predict the probability of Bank of America's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of America's price. Additionally, you may evaluate how the addition of Bank of America to your portfolios can decrease your overall portfolio volatility.