Correlation Between NYSE Composite and Bausch
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By analyzing existing cross correlation between NYSE Composite and Bausch Health Companies, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Bausch.
Diversification Opportunities for NYSE Composite and Bausch
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Bausch is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Bausch go up and down completely randomly.
Pair Corralation between NYSE Composite and Bausch
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.52 times less return on investment than Bausch. But when comparing it to its historical volatility, NYSE Composite is 3.65 times less risky than Bausch. It trades about 0.13 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,400 in Bausch Health Companies on September 12, 2024 and sell it today you would earn a total of 385.00 from holding Bausch Health Companies or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.69% |
| Values | Daily Returns |
NYSE Composite vs. Bausch Health Companies
Performance |
| Timeline |
NYSE Composite and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Bausch Health Companies
Pair trading matchups for Bausch
Pair Trading with NYSE Composite and Bausch
The main advantage of trading using opposite NYSE Composite and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Boston Beer | NYSE Composite vs. Freedom Bank of | NYSE Composite vs. KeyCorp | NYSE Composite vs. LithiumBank Resources Corp |
| Bausch vs. Acco Brands | Bausch vs. John Wiley Sons | Bausch vs. Universal Technical Institute | Bausch vs. Delek Logistics Partners |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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