Correlation Between PT Wintermar and Bausch Health
Can any of the company-specific risk be diversified away by investing in both PT Wintermar 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 PT Wintermar and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Wintermar Offshore and Bausch Health Companies, you can compare the effects of market volatilities on PT Wintermar 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 PT Wintermar with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Wintermar and Bausch Health.
Diversification Opportunities for PT Wintermar and Bausch Health
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between W6O and Bausch is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PT Wintermar Offshore 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 PT Wintermar 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 PT Wintermar Offshore 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 PT Wintermar i.e., PT Wintermar and Bausch Health go up and down completely randomly.
Pair Corralation between PT Wintermar and Bausch Health
Assuming the 90 days horizon PT Wintermar Offshore is expected to generate 2.68 times more return on investment than Bausch Health. However, PT Wintermar is 2.68 times more volatile than Bausch Health Companies. It trades about 0.05 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 1.30 in PT Wintermar Offshore on October 15, 2024 and sell it today you would earn a total of 0.70 from holding PT Wintermar Offshore or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Wintermar Offshore vs. Bausch Health Companies
Performance |
| Timeline |
| PT Wintermar Offshore |
| Bausch Health Companies |
PT Wintermar and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Wintermar and Bausch Health
The main advantage of trading using opposite PT Wintermar and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Wintermar 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.| PT Wintermar vs. Hyrican Informationssysteme Aktiengesellschaft | PT Wintermar vs. PPHE HOTEL GROUP | PT Wintermar vs. Cass Information Systems | PT Wintermar vs. Park Hotels Resorts |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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