Correlation Between Intel and Bausch
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By analyzing existing cross correlation between Intel and Bausch Health Companies, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bausch.
Diversification Opportunities for Intel and Bausch
Very weak diversification
The 3 months correlation between Intel and Bausch is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intel 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 Intel 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 Intel 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 Intel i.e., Intel and Bausch go up and down completely randomly.
Pair Corralation between Intel and Bausch
Given the investment horizon of 90 days Intel is expected to generate 0.34 times more return on investment than Bausch. However, Intel is 2.98 times less risky than Bausch. It trades about -0.36 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.24 per unit of risk. If you would invest 2,505 in Intel on September 11, 2024 and sell it today you would lose (424.00) from holding Intel or give up 16.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 75.0% |
Values | Daily Returns |
Intel vs. Bausch Health Companies
Performance |
Timeline |
Intel |
Bausch Health Companies |
Intel and Bausch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intel and Bausch
The main advantage of trading using opposite Intel and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.Intel vs. Sunrun Inc | Intel vs. Canadian Solar | Intel vs. Sunnova Energy International | Intel vs. JinkoSolar Holding |
Bausch vs. Topbuild Corp | Bausch vs. RBC Bearings Incorporated | Bausch vs. Saia Inc | Bausch vs. Cementos Pacasmayo SAA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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