Correlation Between Bausch Health and Quisitive Technology
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Quisitive Technology 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 Quisitive Technology 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 Quisitive Technology Solutions, you can compare the effects of market volatilities on Bausch Health and Quisitive Technology 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 Quisitive Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Quisitive Technology.
Diversification Opportunities for Bausch Health and Quisitive Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bausch and Quisitive is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Quisitive Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quisitive Technology 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 Quisitive Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quisitive Technology has no effect on the direction of Bausch Health i.e., Bausch Health and Quisitive Technology go up and down completely randomly.
Pair Corralation between Bausch Health and Quisitive Technology
Assuming the 90 days trading horizon Bausch Health Companies is expected to under-perform the Quisitive Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bausch Health Companies is 1.36 times less risky than Quisitive Technology. The stock trades about -0.26 of its potential returns per unit of risk. The Quisitive Technology Solutions is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Quisitive Technology Solutions on September 2, 2024 and sell it today you would lose (3.00) from holding Quisitive Technology Solutions or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Quisitive Technology Solutions
Performance |
| Timeline |
| Bausch Health Companies |
| Quisitive Technology |
Bausch Health and Quisitive Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Quisitive Technology
The main advantage of trading using opposite Bausch Health and Quisitive Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Quisitive Technology 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 Quisitive Technology will offset losses from the drop in Quisitive Technology's long position.| Bausch Health vs. Gildan Activewear | Bausch Health vs. Open Text Corp | Bausch Health vs. Waste Connections | Bausch Health vs. CCL Industries |
| Quisitive Technology vs. Qyou Media | Quisitive Technology vs. Kraken Robotics | Quisitive Technology vs. Nexoptic Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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