Correlation Between G2D Investments and Bank of America
Can any of the company-specific risk be diversified away by investing in both G2D Investments 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 G2D Investments 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 G2D Investments and Bank of America, you can compare the effects of market volatilities on G2D Investments 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 G2D Investments with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and Bank of America.
Diversification Opportunities for G2D Investments and Bank of America
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between G2D and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding G2D 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 G2D Investments 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 G2D 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 G2D Investments i.e., G2D Investments and Bank of America go up and down completely randomly.
Pair Corralation between G2D Investments and Bank of America
Assuming the 90 days trading horizon G2D Investments is expected to generate 0.95 times more return on investment than Bank of America. However, G2D Investments is 1.05 times less risky than Bank of America. It trades about -0.07 of its potential returns per unit of risk. Bank of America is currently generating about -0.1 per unit of risk. If you would invest 180.00 in G2D Investments on December 29, 2024 and sell it today you would lose (16.00) from holding G2D Investments or give up 8.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
G2D Investments vs. Bank of America
Performance |
Timeline |
G2D Investments |
Bank of America |
G2D Investments and Bank of America Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G2D Investments and Bank of America
The main advantage of trading using opposite G2D Investments and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments 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.G2D Investments vs. BlackRock | G2D Investments vs. Brookfield | G2D Investments vs. T Rowe Price | G2D Investments vs. The Bank of |
Bank of America vs. Cognizant Technology Solutions | Bank of America vs. Akamai Technologies, | Bank of America vs. Spotify Technology SA | Bank of America vs. Metalfrio Solutions SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Equity Valuation Check real value of public entities based on technical and fundamental data |