Correlation Between Bausch Health and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Macquarie Group 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 Bausch Health and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Health Companies and Macquarie Group Limited, you can compare the effects of market volatilities on Bausch Health and Macquarie Group 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 Bausch Health with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Macquarie Group.
Diversification Opportunities for Bausch Health and Macquarie Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bausch and Macquarie is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Bausch Health 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 Bausch Health Companies are associated (or correlated) with Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Bausch Health i.e., Bausch Health and Macquarie Group go up and down completely randomly.
Pair Corralation between Bausch Health and Macquarie Group
Assuming the 90 days horizon Bausch Health Companies is expected to generate 2.62 times more return on investment than Macquarie Group. However, Bausch Health is 2.62 times more volatile than Macquarie Group Limited. It trades about -0.08 of its potential returns per unit of risk. Macquarie Group Limited is currently generating about -0.3 per unit of risk. If you would invest 760.00 in Bausch Health Companies on September 26, 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 | 100.0% |
Values | Daily Returns |
Bausch Health Companies vs. Macquarie Group Limited
Performance |
Timeline |
Bausch Health Companies |
Macquarie Group |
Bausch Health and Macquarie Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bausch Health and Macquarie Group
The main advantage of trading using opposite Bausch Health and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Macquarie Group 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 Macquarie Group will offset losses from the drop in Macquarie Group's long position.Bausch Health vs. Zoetis Inc | Bausch Health vs. Takeda Pharmaceutical | Bausch Health vs. Eisai Co | Bausch Health vs. Shionogi Co |
Macquarie Group vs. Morgan Stanley | Macquarie Group vs. Morgan Stanley | Macquarie Group vs. The Charles Schwab | Macquarie Group vs. The Goldman Sachs |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |