Correlation Between Bausch Health and Dream Impact
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By analyzing existing cross correlation between Bausch Health Companies and Dream Impact Trust, you can compare the effects of market volatilities on Bausch Health and Dream Impact 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 Dream Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Dream Impact.
Diversification Opportunities for Bausch Health and Dream Impact
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bausch and Dream is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Dream Impact Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Impact Trust 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 Dream Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Impact Trust has no effect on the direction of Bausch Health i.e., Bausch Health and Dream Impact go up and down completely randomly.
Pair Corralation between Bausch Health and Dream Impact
Assuming the 90 days trading horizon Bausch Health Companies is expected to under-perform the Dream Impact. In addition to that, Bausch Health is 1.17 times more volatile than Dream Impact Trust. It trades about -0.1 of its total potential returns per unit of risk. Dream Impact Trust is currently generating about 0.15 per unit of volatility. If you would invest 404.00 in Dream Impact Trust on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Dream Impact Trust or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Dream Impact Trust
Performance |
| Timeline |
| Bausch Health Companies |
| Dream Impact Trust |
Bausch Health and Dream Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Dream Impact
The main advantage of trading using opposite Bausch Health and Dream Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Dream Impact 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 Dream Impact will offset losses from the drop in Dream Impact's long position.| Bausch Health vs. iShares Canadian HYBrid | Bausch Health vs. Altagas Cum Red | Bausch Health vs. European Residential Real | Bausch Health vs. iShares Fundamental Hedged |
| Dream Impact vs. European Residential Real | Dream Impact vs. Pro Real Estate | Dream Impact vs. BSR Real Estate | Dream Impact vs. Morguard North American |
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 Positions Ratings module to 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.
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