Correlation Between Bank of America and TREEHOUSE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and TREEHOUSE FOODS INC, you can compare the effects of market volatilities on Bank of America and TREEHOUSE 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 TREEHOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and TREEHOUSE.
Diversification Opportunities for Bank of America and TREEHOUSE
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and TREEHOUSE is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and TREEHOUSE FOODS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TREEHOUSE FOODS INC 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 TREEHOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TREEHOUSE FOODS INC has no effect on the direction of Bank of America i.e., Bank of America and TREEHOUSE go up and down completely randomly.
Pair Corralation between Bank of America and TREEHOUSE
Considering the 90-day investment horizon Bank of America is expected to generate 1.61 times more return on investment than TREEHOUSE. However, Bank of America is 1.61 times more volatile than TREEHOUSE FOODS INC. It trades about 0.13 of its potential returns per unit of risk. TREEHOUSE FOODS INC is currently generating about -0.06 per unit of risk. If you would invest 4,153 in Bank of America on November 1, 2024 and sell it today you would earn a total of 519.00 from holding Bank of America or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank of America vs. TREEHOUSE FOODS INC
Performance |
| Timeline |
| Bank of America |
| TREEHOUSE FOODS INC |
Bank of America and TREEHOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and TREEHOUSE
The main advantage of trading using opposite Bank of America and TREEHOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, TREEHOUSE 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 TREEHOUSE will offset losses from the drop in TREEHOUSE's long position.| Bank of America vs. Royal Bank of | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Canadian Imperial Bank |
| TREEHOUSE vs. GMS Inc | TREEHOUSE vs. Eldorado Gold Corp | TREEHOUSE vs. Uranium Energy Corp | TREEHOUSE vs. Avient Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |