Correlation Between Bank of America and Guidepath Managed
Can any of the company-specific risk be diversified away by investing in both Bank of America and Guidepath Managed 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 Guidepath Managed 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 Guidepath Managed Futures, you can compare the effects of market volatilities on Bank of America and Guidepath Managed 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 Guidepath Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Guidepath Managed.
Diversification Opportunities for Bank of America and Guidepath Managed
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Guidepath is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures 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 Guidepath Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Bank of America i.e., Bank of America and Guidepath Managed go up and down completely randomly.
Pair Corralation between Bank of America and Guidepath Managed
Considering the 90-day investment horizon Bank of America is expected to generate 3.13 times more return on investment than Guidepath Managed. However, Bank of America is 3.13 times more volatile than Guidepath Managed Futures. It trades about 0.18 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.07 per unit of risk. If you would invest 4,439 in Bank of America on June 3, 2025 and sell it today you would earn a total of 635.00 from holding Bank of America or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Guidepath Managed Futures
Performance |
| Timeline |
| Bank of America |
| Guidepath Managed Futures |
Bank of America and Guidepath Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Guidepath Managed
The main advantage of trading using opposite Bank of America and Guidepath Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Guidepath Managed 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 Guidepath Managed will offset losses from the drop in Guidepath Managed's long position.| Bank of America vs. Xponential Fitness | Bank of America vs. TIM Participacoes SA | Bank of America vs. Alibaba Group Holding | Bank of America vs. Planet Fitness |
| Guidepath Managed vs. Aqr Managed Futures | Guidepath Managed vs. Pimco Trends Managed | Guidepath Managed vs. Pimco Trends Managed | Guidepath Managed vs. American Beacon Ahl |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |