Correlation Between B of A and Allovir

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both B of A and Allovir 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 B of A and Allovir 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 Allovir, you can compare the effects of market volatilities on B of A and Allovir 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 B of A with a short position of Allovir. Check out your portfolio center. Please also check ongoing floating volatility patterns of B of A and Allovir.

Diversification Opportunities for B of A and Allovir

0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between B of A and Allovir is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of America and Allovir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allovir and B of A 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 Allovir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allovir has no effect on the direction of B of A i.e., B of A and Allovir go up and down completely randomly.

Pair Corralation between B of A and Allovir

Considering the 90-day investment horizon Bank Of America is expected to under-perform the Allovir. But the stock apears to be less risky and, when comparing its historical volatility, Bank Of America is 4.25 times less risky than Allovir. The stock trades about -0.02 of its potential returns per unit of risk. The Allovir is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  393.00  in Allovir on June 29, 2022 and sell it today you would earn a total of  425.00  from holding Allovir or generate 108.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Bank Of America  vs.  Allovir

 Performance (%) 
       Timeline  
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

Allovir 
Allovir Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Allovir are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Allovir reported solid returns over the last few months and may actually be approaching a breakup point.

Allovir Price Channel

B of A and Allovir Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with B of A and Allovir

The main advantage of trading using opposite B of A and Allovir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B of A position performs unexpectedly, Allovir 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 Allovir will offset losses from the drop in Allovir's long position.
B of A vs. Kibush Capital Corp
The idea behind Bank Of America and Allovir 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.
Allovir vs. Clearwater Paper Corp
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Positions Ratings
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
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go