Correlation Between Bank of America and Star Equity
Can any of the company-specific risk be diversified away by investing in both Bank of America and Star Equity 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 Bank of America and Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Star Equity Holdings, you can compare the effects of market volatilities on Bank of America and Star Equity 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 Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Star Equity.
Diversification Opportunities for Bank of America and Star Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Star is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings 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 Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of Bank of America i.e., Bank of America and Star Equity go up and down completely randomly.
Pair Corralation between Bank of America and Star Equity
If you would invest 3,750 in Bank of America on February 8, 2024 and sell it today you would earn a total of 34.00 from holding Bank of America or generate 0.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Bank of America vs. Star Equity Holdings
Performance |
Timeline |
Bank of America |
Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of America and Star Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of America and Star Equity
The main advantage of trading using opposite Bank of America and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Star 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 Star Equity will offset losses from the drop in Star Equity's long position.Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of |
Star Equity vs. Alternative Investment | Star Equity vs. JBG SMITH Properties | Star Equity vs. Montauk Renewables | Star Equity vs. Skechers USA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Fundamental Analysis View fundamental data based on most recent published financial statements |