# Correlation Between Bank of America and Curaleaf Holdings

##### Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bank of America and Curaleaf Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of America and Curaleaf Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Curaleaf Holdings, you can compare the effects of market volatilities on Bank of America and Curaleaf Holdings 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 Curaleaf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Curaleaf Holdings.

## Diversification Opportunities for Bank of America and Curaleaf Holdings

 -0.2 Correlation Coefficient

### Good diversification

The 3 months correlation between Bank and Curaleaf is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings 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 Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Bank of America i.e., Bank of America and Curaleaf Holdings go up and down completely randomly.

## Pair Corralation between Bank of America and Curaleaf Holdings

Considering the 90-day investment horizon Bank of America is expected to generate 0.52 times more return on investment than Curaleaf Holdings. However, Bank of America is 1.92 times less risky than Curaleaf Holdings. It trades about -0.18 of its potential returns per unit of risk. Curaleaf Holdings is currently generating about -0.28 per unit of risk. If you would invest  4,159  in Bank of America on May 13, 2024 and sell it today you would lose (331.00) from holding Bank of America or give up 7.96% of portfolio value over 90 days.
 Time Period 3 Months [change] Direction Moves Against Strength Insignificant Accuracy 100.0% Values Daily Returns

## Bank of America  vs.  Curaleaf Holdings

 Performance
 Timeline
 Bank of America Correlation Profile

### 1 of 100

 Weak Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Bank of America are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Bank of America is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
 Performance Backtest Predict
 Curaleaf Holdings Correlation Profile

### 0 of 100

 Weak Strong
Very Weak
Over the last 90 days Curaleaf Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in September 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
 Performance Backtest Predict

## Bank of America and Curaleaf Holdings Volatility Contrast

 Predicted Return Density
 Returns

## Pair Trading with Bank of America and Curaleaf Holdings

The main advantage of trading using opposite Bank of America and Curaleaf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Curaleaf Holdings 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 Curaleaf Holdings will offset losses from the drop in Curaleaf Holdings' long position.
 Bank of America vs. Nu Holdings Bank of America vs. Bank of Nova
The idea behind Bank of America and Curaleaf Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
 Curaleaf Holdings vs. Alimera Sciences Curaleaf Holdings vs. Shuttle Pharmaceuticals Curaleaf Holdings vs. Lifecore Biomedical Curaleaf Holdings vs. Journey Medical Corp