Correlation Between Bank of America and EAGLE
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By analyzing existing cross correlation between Bank of America and EAGLE MATERIALS INC, you can compare the effects of market volatilities on Bank of America and EAGLE 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 Bank of America with a short position of EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and EAGLE.
Diversification Opportunities for Bank of America and EAGLE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and EAGLE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EAGLE MATERIALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS INC and Bank of America 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 Bank of America are associated (or correlated) with EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS INC has no effect on the direction of Bank of America i.e., Bank of America and EAGLE go up and down completely randomly.
Pair Corralation between Bank of America and EAGLE
Considering the 90-day investment horizon Bank of America is expected to under-perform the EAGLE. In addition to that, Bank of America is 2.5 times more volatile than EAGLE MATERIALS INC. It trades about -0.05 of its total potential returns per unit of risk. EAGLE MATERIALS INC is currently generating about -0.04 per unit of volatility. If you would invest 8,530 in EAGLE MATERIALS INC on December 29, 2024 and sell it today you would lose (132.00) from holding EAGLE MATERIALS INC or give up 1.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Bank of America vs. EAGLE MATERIALS INC
Performance |
Timeline |
Bank of America |
EAGLE MATERIALS INC |
Bank of America and EAGLE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and EAGLE
The main advantage of trading using opposite Bank of America and EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, EAGLE 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 EAGLE will offset losses from the drop in EAGLE's long position.Bank of America vs. PJT Partners | Bank of America vs. National Bank Holdings | Bank of America vs. FB Financial Corp | Bank of America vs. Northrim BanCorp |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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