Correlation Between Macquarie Group and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Macquarie Group 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 Macquarie Group and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group Limited and Bausch Health Companies, you can compare the effects of market volatilities on Macquarie Group 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 Macquarie Group with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Bausch Health.
Diversification Opportunities for Macquarie Group and Bausch Health
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Bausch is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Limited 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 Macquarie Group 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 Macquarie Group Limited 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 Macquarie Group i.e., Macquarie Group and Bausch Health go up and down completely randomly.
Pair Corralation between Macquarie Group and Bausch Health
Assuming the 90 days horizon Macquarie Group Limited is expected to under-perform the Bausch Health. But the stock apears to be less risky and, when comparing its historical volatility, Macquarie Group Limited is 2.69 times less risky than Bausch Health. The stock trades about -0.3 of its potential returns per unit of risk. The Bausch Health Companies is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Bausch Health Companies on September 25, 2024 and sell it today you would lose (52.00) from holding Bausch Health Companies or give up 6.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Macquarie Group Limited vs. Bausch Health Companies
Performance |
Timeline |
Macquarie Group |
Bausch Health Companies |
Macquarie Group and Bausch Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macquarie Group and Bausch Health
The main advantage of trading using opposite Macquarie Group and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group 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.Macquarie Group vs. Bausch Health Companies | Macquarie Group vs. YATRA ONLINE DL 0001 | Macquarie Group vs. Cardinal Health | Macquarie Group vs. ARDAGH METAL PACDL 0001 |
Bausch Health vs. Zoetis Inc | Bausch Health vs. Takeda Pharmaceutical | Bausch Health vs. Eisai Co | Bausch Health vs. Shionogi Co |
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.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |