Correlation Between Deluxe and BAXTER
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By analyzing existing cross correlation between Deluxe and BAXTER INTL INC, you can compare the effects of market volatilities on Deluxe and BAXTER 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 Deluxe with a short position of BAXTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deluxe and BAXTER.
Diversification Opportunities for Deluxe and BAXTER
Excellent diversification
The 3 months correlation between Deluxe and BAXTER is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Deluxe and BAXTER INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXTER INTL INC and Deluxe 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 Deluxe are associated (or correlated) with BAXTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXTER INTL INC has no effect on the direction of Deluxe i.e., Deluxe and BAXTER go up and down completely randomly.
Pair Corralation between Deluxe and BAXTER
Considering the 90-day investment horizon Deluxe is expected to generate 3.32 times more return on investment than BAXTER. However, Deluxe is 3.32 times more volatile than BAXTER INTL INC. It trades about 0.13 of its potential returns per unit of risk. BAXTER INTL INC is currently generating about -0.11 per unit of risk. If you would invest 1,947 in Deluxe on September 3, 2024 and sell it today you would earn a total of 370.00 from holding Deluxe or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Deluxe vs. BAXTER INTL INC
Performance |
| Timeline |
| Deluxe |
| BAXTER INTL INC |
Deluxe and BAXTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deluxe and BAXTER
The main advantage of trading using opposite Deluxe and BAXTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deluxe position performs unexpectedly, BAXTER 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 BAXTER will offset losses from the drop in BAXTER's long position.| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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