Correlation Between Bank of America and JOHN HOLT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and JOHN HOLT PLC, you can compare the effects of market volatilities on Bank of America and JOHN HOLT 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 JOHN HOLT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and JOHN HOLT.
Diversification Opportunities for Bank of America and JOHN HOLT
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and JOHN is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and JOHN HOLT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHN HOLT PLC 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 JOHN HOLT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHN HOLT PLC has no effect on the direction of Bank of America i.e., Bank of America and JOHN HOLT go up and down completely randomly.
Pair Corralation between Bank of America and JOHN HOLT
Considering the 90-day investment horizon Bank of America is expected to generate 10.39 times less return on investment than JOHN HOLT. But when comparing it to its historical volatility, Bank of America is 3.27 times less risky than JOHN HOLT. It trades about 0.27 of its potential returns per unit of risk. JOHN HOLT PLC is currently generating about 0.85 of returns per unit of risk over similar time horizon. If you would invest 275.00 in JOHN HOLT PLC on August 30, 2024 and sell it today you would earn a total of 617.00 from holding JOHN HOLT PLC or generate 224.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. JOHN HOLT PLC
Performance |
| Timeline |
| Bank of America |
| JOHN HOLT PLC |
Bank of America and JOHN HOLT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and JOHN HOLT
The main advantage of trading using opposite Bank of America and JOHN HOLT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, JOHN HOLT 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 JOHN HOLT will offset losses from the drop in JOHN HOLT's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings |
| JOHN HOLT vs. IKEJA HOTELS PLC | JOHN HOLT vs. C I LEASING | JOHN HOLT vs. VETIVA INDUSTRIAL ETF | JOHN HOLT vs. NOTORE CHEMICAL IND |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |