BANK OF AMERICA Five Year Return vs. Beta

For BANK OF AMERICA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BANK OF AMERICA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BANK OF AMERICA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BANK OF AMERICA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BANK OF AMERICA over time as well as its relative position and ranking within its peers. Check out Trending Equities.

Please note, there is a significant difference between BANK OF AMERICA's value and its price as these two are different measures arrived at by different means. Investors typically determine BANK OF AMERICA value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BANK OF AMERICA'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.

BANK OF AMERICA Beta vs. Five Year Return Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BANK OF AMERICA's current stock value. Our valuation model uses many indicators to compare BANK OF AMERICA value to that of its competitors to determine the firm's financial worth.

BANK OF AMERICA is number one stock in five year return category among related companies. It is rated below average in beta category among related companies totaling about 0.01 of Beta per Five Year Return. The ratio of Five Year Return to Beta for BANK OF AMERICA is roughly 122.60 . Comparative valuation analysis is a catch-all model that can be used if you cannot value BANK OF AMERICA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BANK OF AMERICA's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the BANK OF AMERICA's earnings, one of the primary drivers of an investment's value.

BAC-PD Beta vs. Five Year Return

Five Year Return is considered one of the best measures to evaluate fund performance, especially from the mid and long term perspective. It shows the total annualized return generated from holding equity for the last five years and represents capital appreciation of the investment, including all dividends, losses, and capital gains distributions.

BANK OF AMERICA

Five Year Return

(Mean of Monthly Returns - 1)

100%

6.13 %

Although Five Year Returns can give a sense of overall investment potential, it is recommended to compare equity performance with similar assets for the same five year time interval. Similarly, comparing overall investment performance over the last five years with the appropriate market index is a great way to determine how this equity instrument will perform during unforeseen market fluctuations.

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

BANK OF AMERICA

Beta

Covariance

Variance

0.05

In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

BAC-PD Beta Comparison

BANK OF AMERICA is currently under evaluation in beta category among related companies.

Beta Analysis

Let's try to break down what BAC-PD's beta means in this case. As returns on the market increase, BANK OF AMERICA returns are expected to increase less than the market. However, during the bear market, the loss on holding BANK OF AMERICA will be expected to be smaller as well.

BANK OF AMERICA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BANK OF AMERICA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BANK OF AMERICA will eventually generate negative long term returns. The profitability progress is the general direction of BANK OF AMERICA's change in net profit over the period of time. It can combine multiple indicators of BANK OF AMERICA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina. Bank of America operates under Banks - Global classification in USA and traded on New York Stock Exchange. It employs 208000 people.

BAC-PD Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on BANK OF AMERICA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of BANK OF AMERICA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the BANK OF AMERICA's important profitability drivers and their relationship over time.

Use BANK OF AMERICA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if BANK OF AMERICA position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.

BANK OF AMERICA Pair Trading

BANK OF AMERICA Pair Trading Analysis

The ability to find closely correlated positions to PerkinElmer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PerkinElmer 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 PerkinElmer - 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 PerkinElmer to buy it.

The correlation of PerkinElmer 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 PerkinElmer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PerkinElmer 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.

Correlation analysis and pair trading evaluation for PerkinElmer can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Use Investing Themes to Complement your BANK OF AMERICA position

In addition to having BANK OF AMERICA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Compulsion Thematic Idea Now

Compulsion

Companies involved in research, development, and manufacturing of products with compulsion characteristics such as cigarettes, addictive drugs and alcohol. The Compulsion theme has 40 constituents at this time.

You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Compulsion Theme or any other thematic opportunities.

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Other Tools for BAC-PD Stock

When running BANK OF AMERICA price analysis, check to measure BANK OF AMERICA'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 BANK OF AMERICA is operating at the current time. Most of BANK OF AMERICA's value examination focuses on studying past and present price action to predict the probability of BANK OF AMERICA's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move BANK OF AMERICA's price. Additionally, you may evaluate how the addition of BANK OF AMERICA to your portfolios can decrease your overall portfolio volatility.

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