Correlation Between Bank of America and EVE Health
Can any of the company-specific risk be diversified away by investing in both Bank of America and EVE Health 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 EVE Health 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 EVE Health Group, you can compare the effects of market volatilities on Bank of America and EVE Health 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 EVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and EVE Health.
Diversification Opportunities for Bank of America and EVE Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and EVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and EVE Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVE Health Group 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 EVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVE Health Group has no effect on the direction of Bank of America i.e., Bank of America and EVE Health go up and down completely randomly.
Pair Corralation between Bank of America and EVE Health
If you would invest 3,883 in Bank of America on August 25, 2024 and sell it today you would earn a total of 817.00 from holding Bank of America or generate 21.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Bank of America vs. EVE Health Group
Performance |
| Timeline |
| Bank of America |
| EVE Health Group |
Bank of America and EVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and EVE Health
The main advantage of trading using opposite Bank of America and EVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, EVE Health 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 EVE Health will offset losses from the drop in EVE Health's long position.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| EVE Health vs. Energy Resources | EVE Health vs. 88 Energy | EVE Health vs. Amani Gold | EVE Health vs. A1 Investments Resources |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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