Correlation Between National CineMedia and Bausch
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By analyzing existing cross correlation between National CineMedia and Bausch Health Companies, you can compare the effects of market volatilities on National CineMedia and Bausch 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 National CineMedia with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Bausch.
Diversification Opportunities for National CineMedia and Bausch
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Bausch is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia 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 National CineMedia 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 National CineMedia are associated (or correlated) with Bausch. 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 National CineMedia i.e., National CineMedia and Bausch go up and down completely randomly.
Pair Corralation between National CineMedia and Bausch
Given the investment horizon of 90 days National CineMedia is expected to under-perform the Bausch. In addition to that, National CineMedia is 1.26 times more volatile than Bausch Health Companies. It trades about -0.01 of its total potential returns per unit of risk. Bausch Health Companies is currently generating about 0.07 per unit of volatility. If you would invest 6,624 in Bausch Health Companies on October 24, 2024 and sell it today you would earn a total of 166.00 from holding Bausch Health Companies or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 32.2% |
| Values | Daily Returns |
National CineMedia vs. Bausch Health Companies
Performance |
| Timeline |
| National CineMedia |
| Bausch Health Companies |
National CineMedia and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Bausch
The main advantage of trading using opposite National CineMedia and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Bausch 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 will offset losses from the drop in Bausch's long position.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
| Bausch vs. National CineMedia | Bausch vs. Philip Morris International | Bausch vs. Ubisoft Entertainment | Bausch vs. British American Tobacco |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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