Correlation Between Soken Chemical and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Soken Chemical 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 Soken Chemical and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and Bausch Health Companies, you can compare the effects of market volatilities on Soken Chemical 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 Soken Chemical with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and Bausch Health.
Diversification Opportunities for Soken Chemical and Bausch Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and Bausch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering 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 Soken Chemical 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 Soken Chemical Engineering 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 Soken Chemical i.e., Soken Chemical and Bausch Health go up and down completely randomly.
Pair Corralation between Soken Chemical and Bausch Health
If you would invest 715.00 in Bausch Health Companies on September 26, 2024 and sell it today you would lose (7.00) from holding Bausch Health Companies or give up 0.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Soken Chemical Engineering vs. Bausch Health Companies
Performance |
Timeline |
Soken Chemical Engin |
Bausch Health Companies |
Soken Chemical and Bausch Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Soken Chemical and Bausch Health
The main advantage of trading using opposite Soken Chemical and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical 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.Soken Chemical vs. Linde PLC | Soken Chemical vs. Air Liquide SA | Soken Chemical vs. The Sherwin Williams | Soken Chemical vs. Ecolab Inc |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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