Correlation Between Bausch Health and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Manulife Financial 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 Bausch Health and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Health Companies and Manulife Financial Corp, you can compare the effects of market volatilities on Bausch Health and Manulife Financial 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 Bausch Health with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Manulife Financial.
Diversification Opportunities for Bausch Health and Manulife Financial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bausch and Manulife is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Bausch Health 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 Bausch Health Companies are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of Bausch Health i.e., Bausch Health and Manulife Financial go up and down completely randomly.
Pair Corralation between Bausch Health and Manulife Financial
If you would invest 895.00 in Bausch Health Companies on August 29, 2024 and sell it today you would earn a total of 244.00 from holding Bausch Health Companies or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Manulife Financial Corp
Performance |
| Timeline |
| Bausch Health Companies |
| Manulife Financial Corp |
Bausch Health and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Manulife Financial
The main advantage of trading using opposite Bausch Health and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Manulife Financial 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 Manulife Financial will offset losses from the drop in Manulife Financial's long position.| Bausch Health vs. Gildan Activewear | Bausch Health vs. Open Text Corp | Bausch Health vs. Waste Connections | Bausch Health vs. CCL Industries |
| Manulife Financial vs. Walmart Inc CDR | Manulife Financial vs. Amazon CDR | Manulife Financial vs. Berkshire Hathaway CDR | Manulife Financial vs. UnitedHealth Group CDR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |