Correlation Between Anfield Dynamic and B of A

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Can any of the company-specific risk be diversified away by investing in both Anfield Dynamic and B of A 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 Anfield Dynamic and B of A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anfield Dynamic Fixed and Bank Of America, you can compare the effects of market volatilities on Anfield Dynamic and B of A 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 Anfield Dynamic with a short position of B of A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Dynamic and B of A.

Diversification Opportunities for Anfield Dynamic and B of A

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Anfield and B of A is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Dynamic Fixed 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 Anfield Dynamic 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 Anfield Dynamic Fixed are associated (or correlated) with B of A. 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 Anfield Dynamic i.e., Anfield Dynamic and B of A go up and down completely randomly.

Pair Corralation between Anfield Dynamic and B of A

Given the investment horizon of 90 days Anfield Dynamic Fixed is expected to under-perform the B of A. But the etf apears to be less risky and, when comparing its historical volatility, Anfield Dynamic Fixed is 5.65 times less risky than B of A. The etf trades about -0.11 of its potential returns per unit of risk. The Bank Of America is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,461  in Bank Of America on July 4, 2022 and sell it today you would earn a total of  559.00  from holding Bank Of America or generate 22.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Anfield Dynamic Fixed  vs.  Bank Of America

 Performance (%) 
       Timeline  
Anfield Dynamic Fixed 
Anfield Performance
0 of 100
Over the last 90 days Anfield Dynamic Fixed has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Anfield Dynamic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Anfield Price Channel

Bank Of America 
B of A Performance
0 of 100
Over the last 90 days Bank Of America has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, B of A is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

B of A Price Channel

Anfield Dynamic and B of A Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anfield Dynamic and B of A

The main advantage of trading using opposite Anfield Dynamic and B of A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anfield Dynamic position performs unexpectedly, B of A 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 B of A will offset losses from the drop in B of A's long position.
Anfield Dynamic vs. Johnson Johnson
The idea behind Anfield Dynamic Fixed and Bank Of America pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
B of A vs. Amazon Inc
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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