Correlation Between Teradyne and Bausch
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By analyzing existing cross correlation between Teradyne and Bausch Health Companies, you can compare the effects of market volatilities on Teradyne 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 Teradyne with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradyne and Bausch.
Diversification Opportunities for Teradyne and Bausch
Pay attention - limited upside
The 3 months correlation between Teradyne and Bausch is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Teradyne 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 Teradyne 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 Teradyne 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 Teradyne i.e., Teradyne and Bausch go up and down completely randomly.
Pair Corralation between Teradyne and Bausch
Considering the 90-day investment horizon Teradyne is expected to generate 10.57 times less return on investment than Bausch. But when comparing it to its historical volatility, Teradyne is 2.1 times less risky than Bausch. It trades about 0.03 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,334 in Bausch Health Companies on September 12, 2024 and sell it today you would earn a total of 2,796 from holding Bausch Health Companies or generate 64.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 24.19% |
| Values | Daily Returns |
Teradyne vs. Bausch Health Companies
Performance |
| Timeline |
| Teradyne |
| Bausch Health Companies |
Teradyne and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teradyne and Bausch
The main advantage of trading using opposite Teradyne and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradyne 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.| Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu Inc |
| Bausch vs. Hudson Pacific Properties | Bausch vs. Teradyne | Bausch vs. Bassett Furniture Industries | Bausch vs. Live Ventures |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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