Bank of Montreal Correlations

BMO Stock

USD 94.92 0.29 0.31%

The current 90-days correlation between Bank of Montreal and Canadian Imperial Bank is 0.25 (i.e., Modest diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bank of Montreal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of Montreal moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Bank of Montreal Correlation With Market

Very weak diversification

The correlation between Bank of Montreal and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Montreal and DJI 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 Montreal. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.

To learn how to invest in Bank Stock, please use our How to Invest in Bank of Montreal guide.

Moving together with Bank Stock

0.77	C	Citigroup Aggressive Push	Pair Corr
0.92	BK	Bank of New York Fiscal Year End 10th of January 2025	Pair Corr
0.77	CM	Canadian Imperial Bank Fiscal Year End 5th of December 2024	Pair Corr
0.76	BML-PG	Bank of America	Pair Corr
0.74	BML-PH	Bank of America	Pair Corr
0.79	BML-PJ	Bank of America	Pair Corr
0.76	BML-PL	Bank of America	Pair Corr
0.75	BAC	Bank of America Fiscal Year End 10th of January 2025	Pair Corr
0.8	BCS	Barclays PLC ADR	Pair Corr
0.79	BNS	Bank of Nova Scotia Normal Trading	Pair Corr
0.62	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.62	JPM-PC	JPMorgan Chase	Pair Corr
0.78	NWG	Natwest Group PLC	Pair Corr
0.81	UBS	UBS Group AG	Pair Corr
0.76	WFC	Wells Fargo Aggressive Push	Pair Corr
0.7	HSBC	HSBC Holdings PLC	Pair Corr
0.65	BAC-PB	Bank of America	Pair Corr
0.7	BAC-PE	Bank of America	Pair Corr
0.67	BAC-PK	Bank of America	Pair Corr

Moving against Bank Stock

0.71	ING	ING Group NV	Pair Corr
0.45	TD	Toronto Dominion Bank Fiscal Year End 5th of December 2024	Pair Corr
0.37	JPM-PM	JPMorgan Chase	Pair Corr

Related Correlations Analysis

	CM	TD	RY	C	BNS	BAC	JPM	WFC
CM		-0.41	0.87	0.61	0.88	0.72	0.55	0.7	CM
TD	-0.41		-0.22	-0.58	-0.17	-0.72	-0.79	-0.79	TD
RY	0.87	-0.22		0.34	0.78	0.46	0.28	0.43	RY
C	0.61	-0.58	0.34		0.63	0.93	0.9	0.92	C
BNS	0.88	-0.17	0.78	0.63		0.65	0.47	0.61	BNS
BAC	0.72	-0.72	0.46	0.93	0.65		0.96	0.98	BAC
JPM	0.55	-0.79	0.28	0.9	0.47	0.96		0.96	JPM
WFC	0.7	-0.79	0.43	0.92	0.61	0.98	0.96		WFC
	CM	TD	RY	C	BNS	BAC	JPM	WFC

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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

WFC	+ 0.98	BAC
JPM	+ 0.96	BAC
WFC	+ 0.96	JPM
BAC	+ 0.93	C
WFC	+ 0.92	C
JPM	+ 0.9	C

High negative correlations

WFC	- 0.79	TD
JPM	- 0.79	TD
BAC	- 0.72	TD
C	- 0.58	TD
TD	- 0.41	CM
RY	- 0.22	TD

Risk-Adjusted Indicators

There is a big difference between Bank Stock performing well and Bank of Montreal 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 Bank of Montreal'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CM	0.75	0.26	0.24	0.69	0.31	(0.88)	1.80	(1.15)	6.96
TD	0.80	(0.05)	0.00	0.27	0.00	0.00	1.54	(1.42)	8.21
RY	0.70	0.10	0.05	0.35	0.50	(0.81)	1.92	(0.90)	4.27
C	1.42	0.00	0.08	0.12	1.40	(1.71)	3.56	(1.97)	10.33
BNS	0.74	0.24	0.20	0.89	0.41	(0.89)	1.92	(1.20)	4.91
BAC	1.08	0.10	0.17	0.19	0.65	(1.37)	2.19	(1.41)	9.84
JPM	1.12	0.00	0.06	0.12	1.44	(1.17)	2.05	(2.00)	15.87
WFC	1.52	0.24	0.21	0.23	1.29	(1.75)	3.60	(2.18)	16.76

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