Correlation Between QC Copper and Bausch Health
Can any of the company-specific risk be diversified away by investing in both QC Copper 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 QC Copper and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QC Copper and and Bausch Health Companies, you can compare the effects of market volatilities on QC Copper 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 QC Copper with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and Bausch Health.
Diversification Opportunities for QC Copper and Bausch Health
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between QCCU and Bausch is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and 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 QC Copper 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 QC Copper and 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 QC Copper i.e., QC Copper and Bausch Health go up and down completely randomly.
Pair Corralation between QC Copper and Bausch Health
Assuming the 90 days trading horizon QC Copper and is expected to generate 1.4 times more return on investment than Bausch Health. However, QC Copper is 1.4 times more volatile than Bausch Health Companies. It trades about 0.02 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.02 per unit of risk. If you would invest 15.00 in QC Copper and on August 27, 2024 and sell it today you would lose (2.00) from holding QC Copper and or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QC Copper and vs. Bausch Health Companies
Performance |
| Timeline |
| QC Copper |
| Bausch Health Companies |
QC Copper and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QC Copper and Bausch Health
The main advantage of trading using opposite QC Copper and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper 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.| QC Copper vs. Dore Copper Mining | QC Copper vs. Baselode Energy Corp | QC Copper vs. Surge Copper Corp | QC Copper vs. Marimaca Copper Corp |
| Bausch Health vs. Auxly Cannabis Group | Bausch Health vs. Entourage Health Corp | Bausch Health vs. iShares Canadian HYBrid | Bausch Health vs. Altagas Cum Red |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |