Correlation Between Verizon Communications and Bausch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Verizon Communications and Bausch Health Companies, you can compare the effects of market volatilities on Verizon Communications 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 Verizon Communications with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verizon Communications and Bausch.
Diversification Opportunities for Verizon Communications and Bausch
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Verizon and Bausch is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Verizon Communications 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 Verizon Communications 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 Verizon Communications 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 Verizon Communications i.e., Verizon Communications and Bausch go up and down completely randomly.
Pair Corralation between Verizon Communications and Bausch
Allowing for the 90-day total investment horizon Verizon Communications is expected to generate 0.46 times more return on investment than Bausch. However, Verizon Communications is 2.17 times less risky than Bausch. It trades about 0.19 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.07 per unit of risk. If you would invest 4,044 in Verizon Communications on September 12, 2024 and sell it today you would earn a total of 186.00 from holding Verizon Communications or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Verizon Communications vs. Bausch Health Companies
Performance |
| Timeline |
| Verizon Communications |
| Bausch Health Companies |
Verizon Communications and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verizon Communications and Bausch
The main advantage of trading using opposite Verizon Communications and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verizon Communications 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.| Verizon Communications vs. Victory Integrity Smallmid Cap | Verizon Communications vs. Hilton Worldwide Holdings | Verizon Communications vs. NVIDIA | Verizon Communications vs. JPMorgan Chase Co |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |