Correlation Between Bank of America and HOLOGIC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and HOLOGIC INC 325, you can compare the effects of market volatilities on Bank of America and HOLOGIC 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 HOLOGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and HOLOGIC.
Diversification Opportunities for Bank of America and HOLOGIC
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and HOLOGIC is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and HOLOGIC INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOLOGIC INC 325 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 HOLOGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOLOGIC INC 325 has no effect on the direction of Bank of America i.e., Bank of America and HOLOGIC go up and down completely randomly.
Pair Corralation between Bank of America and HOLOGIC
Considering the 90-day investment horizon Bank of America is expected to generate 57.52 times less return on investment than HOLOGIC. But when comparing it to its historical volatility, Bank of America is 50.63 times less risky than HOLOGIC. It trades about 0.06 of its potential returns per unit of risk. HOLOGIC INC 325 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,840 in HOLOGIC INC 325 on September 2, 2024 and sell it today you would lose (118.00) from holding HOLOGIC INC 325 or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.18% |
| Values | Daily Returns |
Bank of America vs. HOLOGIC INC 325
Performance |
| Timeline |
| Bank of America |
| HOLOGIC INC 325 |
Bank of America and HOLOGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and HOLOGIC
The main advantage of trading using opposite Bank of America and HOLOGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, HOLOGIC 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 HOLOGIC will offset losses from the drop in HOLOGIC's long position.| Bank of America vs. Citigroup | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| HOLOGIC vs. Diageo PLC ADR | HOLOGIC vs. Anheuser Busch Inbev | HOLOGIC vs. Universal | HOLOGIC vs. Albertsons Companies |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |