Correlation Between Tidewater and BANK OF AMERICA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Tidewater and BANK OF AMERICA 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 Tidewater and BANK OF AMERICA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidewater and BANK OF AMERICA, you can compare the effects of market volatilities on Tidewater and BANK OF AMERICA 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 Tidewater with a short position of BANK OF AMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidewater and BANK OF AMERICA.

Diversification Opportunities for Tidewater and BANK OF AMERICA

  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Tidewater and BAC-PD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tidewater 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 Tidewater 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 Tidewater are associated (or correlated) with BANK OF AMERICA. 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 Tidewater i.e., Tidewater and BANK OF AMERICA go up and down completely randomly.

Pair Corralation between Tidewater and BANK OF AMERICA

If you would invest (100.00)  in BANK OF AMERICA on December 21, 2022 and sell it today you would earn a total of  100.00  from holding BANK OF AMERICA or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
ValuesDaily Returns

Tidewater  vs.  BANK OF AMERICA

 Performance (%) 

Tidewater Performance

8 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Tidewater are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Tidewater showed solid returns over the last few months and may actually be approaching a breakup point.

BAC-PD 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. In spite of rather sound basic indicators, BANK OF AMERICA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Tidewater and BANK OF AMERICA Volatility Contrast

   Predicted Return Density   

Pair Trading with Tidewater and BANK OF AMERICA

The main advantage of trading using opposite Tidewater and BANK OF AMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidewater position performs unexpectedly, BANK OF AMERICA 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 BANK OF AMERICA will offset losses from the drop in BANK OF AMERICA's long position.
Tidewater vs. ProFrac Holding Corp
Tidewater vs. Atlas Energy Solutions
Tidewater vs. Atlas Lithium
Tidewater vs. Dmc Global
The idea behind Tidewater 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.
BANK OF AMERICA vs. Southwest Gas Holdings
BANK OF AMERICA vs. Alliant Energy 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
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
Bond Directory
Find actively traded corporate debentures issued by US companies
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
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