Correlation Between Bank of America and STRYKER
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By analyzing existing cross correlation between Bank of America and STRYKER P 41, you can compare the effects of market volatilities on Bank of America and STRYKER 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 STRYKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and STRYKER.
Diversification Opportunities for Bank of America and STRYKER
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and STRYKER is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and STRYKER P 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRYKER P 41 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 STRYKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRYKER P 41 has no effect on the direction of Bank of America i.e., Bank of America and STRYKER go up and down completely randomly.
Pair Corralation between Bank of America and STRYKER
Considering the 90-day investment horizon Bank of America is expected to generate 104.39 times less return on investment than STRYKER. But when comparing it to its historical volatility, Bank of America is 88.32 times less risky than STRYKER. It trades about 0.1 of its potential returns per unit of risk. STRYKER P 41 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,438 in STRYKER P 41 on August 31, 2024 and sell it today you would earn a total of 0.00 from holding STRYKER P 41 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.99% |
| Values | Daily Returns |
Bank of America vs. STRYKER P 41
Performance |
| Timeline |
| Bank of America |
| STRYKER P 41 |
Bank of America and STRYKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and STRYKER
The main advantage of trading using opposite Bank of America and STRYKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, STRYKER 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 STRYKER will offset losses from the drop in STRYKER's long position.| Bank of America vs. RLJ Lodging Trust | Bank of America vs. Aquagold International | Bank of America vs. Stepstone Group | Bank of America vs. Morningstar Unconstrained Allocation |
| STRYKER vs. Sensient Technologies | STRYKER vs. Luxfer Holdings PLC | STRYKER vs. Sealed Air | STRYKER vs. Beyond Meat |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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