Correlation Between Boeing and Bausch
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By analyzing existing cross correlation between The Boeing and Bausch Health Companies, you can compare the effects of market volatilities on Boeing and Bausch 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 Boeing with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Bausch.
Diversification Opportunities for Boeing and Bausch
Very good diversification
The 3 months correlation between Boeing and Bausch is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing 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 Boeing 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 The Boeing are associated (or correlated) with Bausch. 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 Boeing i.e., Boeing and Bausch go up and down completely randomly.
Pair Corralation between Boeing and Bausch
Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.86 times more return on investment than Bausch. However, The Boeing is 1.16 times less risky than Bausch. It trades about 0.22 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.07 per unit of risk. If you would invest 14,896 in The Boeing on September 12, 2024 and sell it today you would earn a total of 1,514 from holding The Boeing or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
The Boeing vs. Bausch Health Companies
Performance |
| Timeline |
| Boeing |
| Bausch Health Companies |
Boeing and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Bausch
The main advantage of trading using opposite Boeing and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Bausch 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 will offset losses from the drop in Bausch's long position.| Boeing vs. Victory Integrity Smallmid Cap | Boeing vs. Hilton Worldwide Holdings | Boeing vs. NVIDIA | Boeing vs. JPMorgan Chase Co |
| Bausch vs. Acco Brands | Bausch vs. John Wiley Sons | Bausch vs. Universal Technical Institute | Bausch vs. Delek Logistics Partners |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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