B of A Correlations

BAC Stock  USD 34.28  0.67  1.99%   
The correlation of B of A is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as B of A moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank Of America moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Poor diversification

The correlation between Bank Of America and NYA is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of America and NYA in the same portfolio, assuming nothing else is changed.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank Of America. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
  
The ability to find closely correlated positions to B of A could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace B of A when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back B of A - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank Of America to buy it.

Moving together with BAC Stock

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Related Correlations Analysis

BMA
RY-PM
601939
BCH
BBD
BAP
BMA
0.620.670.18-0.590.69
BMA
RY-PM
0.620.6-0.27-0.610.51
RY-PM
601939
0.670.60.1-0.820.79
601939
BCH
0.18-0.270.10.070.2
BCH
BBD
-0.59-0.61-0.820.07-0.54
BBD
BAP
0.690.510.790.2-0.54
BAP
BMA
RY-PM
601939
BCH
BBD
BAP
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
BAP601939
BAPBMA
601939BMA
RY-PMBMA
601939RY-PM
BAPRY-PM
  
High negative correlations   
BBD601939
BBDRY-PM
BBDBMA
BAPBBD
BCHRY-PM

Risk-Adjusted Indicators

There is a big difference between BAC Stock performing well and B of A Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze B of A's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in B of A without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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B of A Corporate Directors

B of A corporate directors refer to members of a B of A board of directors. The board of directors generally takes responsibility for the B of A's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of B of A's board members must vote for the resolution. The B of A board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Frank BrambleIndependent DirectorProfile
Susan BiesIndependent DirectorProfile
Thomas WoodsIndependent DirectorProfile
Sharon AllenIndependent DirectorProfile

Already Invested in Bank Of America?

The danger of trading Bank Of America is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of B of A is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than B of A. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Bank Of America is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Bank Of America offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of B of A's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of America Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of America Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank Of America. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Bank Of America information on this page should be used as a complementary analysis to other B of A's statistical models used 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for BAC Stock analysis

When running B of A's price analysis, check to measure B of A's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy B of A is operating at the current time. Most of B of A's value examination focuses on studying past and present price action to predict the probability of B of A's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move B of A's price. Additionally, you may evaluate how the addition of B of A to your portfolios can decrease your overall portfolio volatility.
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Is B of A's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of B of A. If investors know BAC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about B of A listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
0.92
Earnings Share
3.08
Revenue Per Share
11.731
Quarterly Revenue Growth
(0.11)
The market value of Bank Of America is measured differently than its book value, which is the value of BAC that is recorded on the company's balance sheet. Investors also form their own opinion of B of A's value that differs from its market value or its book value, called intrinsic value, which is B of A's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because B of A's market value can be influenced by many factors that don't directly affect B of A's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between B of A's value and its price as these two are different measures arrived at by different means. Investors typically determine if B of A is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, B of A's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.