Correlation Between Bank of America and XT Token
Can any of the company-specific risk be diversified away by investing in both Bank of America and XT Token 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 XT Token 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 XT Token, you can compare the effects of market volatilities on Bank of America and XT Token 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 XT Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and XT Token.
Diversification Opportunities for Bank of America and XT Token
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and XT Token is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and XT Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XT Token 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 XT Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XT Token has no effect on the direction of Bank of America i.e., Bank of America and XT Token go up and down completely randomly.
Pair Corralation between Bank of America and XT Token
Considering the 90-day investment horizon Bank of America is expected to generate 2.41 times less return on investment than XT Token. But when comparing it to its historical volatility, Bank of America is 2.5 times less risky than XT Token. It trades about 0.19 of its potential returns per unit of risk. XT Token is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 476.00 in XT Token on June 4, 2025 and sell it today you would earn a total of 187.00 from holding XT Token or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Bank of America vs. XT Token
Performance |
| Timeline |
| Bank of America |
| XT Token |
Bank of America and XT Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and XT Token
The main advantage of trading using opposite Bank of America and XT Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, XT Token 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 XT Token will offset losses from the drop in XT Token'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 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| 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 | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |