Correlation Between Bausch Health and QC Copper
Can any of the company-specific risk be diversified away by investing in both Bausch Health and QC Copper 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 QC Copper 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 QC Copper and, you can compare the effects of market volatilities on Bausch Health and QC Copper 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 QC Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and QC Copper.
Diversification Opportunities for Bausch Health and QC Copper
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bausch and QCCU is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and QC Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Copper 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 QC Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QC Copper has no effect on the direction of Bausch Health i.e., Bausch Health and QC Copper go up and down completely randomly.
Pair Corralation between Bausch Health and QC Copper
Assuming the 90 days trading horizon Bausch Health is expected to generate 1.08 times less return on investment than QC Copper. But when comparing it to its historical volatility, Bausch Health Companies is 1.4 times less risky than QC Copper. It trades about 0.02 of its potential returns per unit of risk. QC Copper and is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15.00 in QC Copper and on August 27, 2024 and sell it today you would lose (2.00) from holding QC Copper and or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. QC Copper and
Performance |
| Timeline |
| Bausch Health Companies |
| QC Copper |
Bausch Health and QC Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and QC Copper
The main advantage of trading using opposite Bausch Health and QC Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, QC Copper 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 QC Copper will offset losses from the drop in QC Copper's long position.| Bausch Health vs. Auxly Cannabis Group | Bausch Health vs. Entourage Health Corp | Bausch Health vs. iShares Canadian HYBrid | Bausch Health vs. Altagas Cum Red |
| QC Copper vs. Dore Copper Mining | QC Copper vs. Baselode Energy Corp | QC Copper vs. Surge Copper Corp | QC Copper vs. Marimaca Copper Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |