Correlation Between CHRISTUS and Bank of America
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By analyzing existing cross correlation between CHRISTUS HEALTH 4341 and Bank of America, you can compare the effects of market volatilities on CHRISTUS and Bank of America 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 CHRISTUS with a short position of Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRISTUS and Bank of America.
Diversification Opportunities for CHRISTUS and Bank of America
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CHRISTUS and Bank is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CHRISTUS HEALTH 4341 and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America and CHRISTUS 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 CHRISTUS HEALTH 4341 are associated (or correlated) with Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of CHRISTUS i.e., CHRISTUS and Bank of America go up and down completely randomly.
Pair Corralation between CHRISTUS and Bank of America
Assuming the 90 days trading horizon CHRISTUS is expected to generate 9.79 times less return on investment than Bank of America. But when comparing it to its historical volatility, CHRISTUS HEALTH 4341 is 2.96 times less risky than Bank of America. It trades about 0.09 of its potential returns per unit of risk. Bank of America is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 4,182 in Bank of America on September 1, 2024 and sell it today you would earn a total of 569.00 from holding Bank of America or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
CHRISTUS HEALTH 4341 vs. Bank of America
Performance |
| Timeline |
| CHRISTUS HEALTH 4341 |
| Bank of America |
CHRISTUS and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRISTUS and Bank of America
The main advantage of trading using opposite CHRISTUS and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRISTUS position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| CHRISTUS vs. AEP TEX INC | CHRISTUS vs. US BANK NATIONAL | CHRISTUS vs. FactSet Research Systems | CHRISTUS vs. Aurora Innovation |
| 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 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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