Correlation Between PHN Multi and Bausch Health
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By analyzing existing cross correlation between PHN Multi Style All Cap and Bausch Health Companies, you can compare the effects of market volatilities on PHN Multi and Bausch Health 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 PHN Multi with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Bausch Health.
Diversification Opportunities for PHN Multi and Bausch Health
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and Bausch is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and PHN Multi 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 PHN Multi Style All Cap are associated (or correlated) with Bausch Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of PHN Multi i.e., PHN Multi and Bausch Health go up and down completely randomly.
Pair Corralation between PHN Multi and Bausch Health
Assuming the 90 days trading horizon PHN Multi is expected to generate 3.7 times less return on investment than Bausch Health. But when comparing it to its historical volatility, PHN Multi Style All Cap is 4.51 times less risky than Bausch Health. It trades about 0.24 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 823.00 in Bausch Health Companies on September 2, 2024 and sell it today you would earn a total of 372.00 from holding Bausch Health Companies or generate 45.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
PHN Multi Style All Cap vs. Bausch Health Companies
Performance |
| Timeline |
| PHN Multi Style |
| Bausch Health Companies |
PHN Multi and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Multi and Bausch Health
The main advantage of trading using opposite PHN Multi and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Bausch Health 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 Bausch Health will offset losses from the drop in Bausch Health's long position.| PHN Multi vs. PHN Canadian Equity | PHN Multi vs. Dynamic Global Fixed | PHN Multi vs. Mawer Global Equity |
| Bausch Health vs. Gildan Activewear | Bausch Health vs. Open Text Corp | Bausch Health vs. Waste Connections | Bausch Health vs. CCL Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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