Correlation Between ELMOS SEMICONDUCTOR and Bausch Health
Can any of the company-specific risk be diversified away by investing in both ELMOS SEMICONDUCTOR and Bausch Health 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 ELMOS SEMICONDUCTOR and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELMOS SEMICONDUCTOR and Bausch Health Companies, you can compare the effects of market volatilities on ELMOS SEMICONDUCTOR and Bausch Health 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 ELMOS SEMICONDUCTOR with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELMOS SEMICONDUCTOR and Bausch Health.
Diversification Opportunities for ELMOS SEMICONDUCTOR and Bausch Health
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ELMOS and Bausch is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR are associated (or correlated) with Bausch Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Bausch Health go up and down completely randomly.
Pair Corralation between ELMOS SEMICONDUCTOR and Bausch Health
Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to under-perform the Bausch Health. In addition to that, ELMOS SEMICONDUCTOR is 1.17 times more volatile than Bausch Health Companies. It trades about -0.05 of its total potential returns per unit of risk. Bausch Health Companies is currently generating about 0.03 per unit of volatility. If you would invest 731.00 in Bausch Health Companies on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Bausch Health Companies or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELMOS SEMICONDUCTOR vs. Bausch Health Companies
Performance |
| Timeline |
| ELMOS SEMICONDUCTOR |
| Bausch Health Companies |
ELMOS SEMICONDUCTOR and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELMOS SEMICONDUCTOR and Bausch Health
The main advantage of trading using opposite ELMOS SEMICONDUCTOR and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELMOS SEMICONDUCTOR position performs unexpectedly, Bausch Health 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 Bausch Health will offset losses from the drop in Bausch Health's long position.| ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Superior Plus Corp | ELMOS SEMICONDUCTOR vs. SIVERS SEMICONDUCTORS AB |
| Bausch Health vs. Superior Plus Corp | Bausch Health vs. NMI Holdings | Bausch Health vs. SIVERS SEMICONDUCTORS AB | Bausch Health vs. Talanx AG |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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