Correlation Between Dupont De and Bausch
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By analyzing existing cross correlation between Dupont De Nemours and Bausch Health Companies, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Bausch.
Diversification Opportunities for Dupont De and Bausch
Very good diversification
The 3 months correlation between Dupont and Bausch is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Bausch go up and down completely randomly.
Pair Corralation between Dupont De and Bausch
Allowing for the 90-day total investment horizon Dupont De is expected to generate 6.35 times less return on investment than Bausch. But when comparing it to its historical volatility, Dupont De Nemours is 2.04 times less risky than Bausch. It trades about 0.04 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,924 in Bausch Health Companies on September 7, 2024 and sell it today you would earn a total of 814.00 from holding Bausch Health Companies or generate 16.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 71.88% |
Values | Daily Returns |
Dupont De Nemours vs. Bausch Health Companies
Performance |
Timeline |
Dupont De Nemours |
Bausch Health Companies |
Dupont De and Bausch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dupont De and Bausch
The main advantage of trading using opposite Dupont De and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.Dupont De vs. Eastman Chemical | Dupont De vs. Coca Cola Consolidated | Dupont De vs. SEI Investments | Dupont De vs. Embecta Corp |
Bausch vs. Analog Devices | Bausch vs. MACOM Technology Solutions | Bausch vs. MagnaChip Semiconductor | Bausch vs. Vishay Intertechnology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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