Correlation Between Tower One and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Tower One 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 Tower One and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower One Wireless and Bausch Health Companies, you can compare the effects of market volatilities on Tower One 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 Tower One with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower One and Bausch Health.
Diversification Opportunities for Tower One and Bausch Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tower and Bausch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower One Wireless 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 Tower One 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 Tower One Wireless 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 Tower One i.e., Tower One and Bausch Health go up and down completely randomly.
Pair Corralation between Tower One and Bausch Health
If you would invest 764.00 in Bausch Health Companies on October 8, 2024 and sell it today you would earn a total of 0.00 from holding Bausch Health Companies or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 93.75% |
Values | Daily Returns |
Tower One Wireless vs. Bausch Health Companies
Performance |
Timeline |
Tower One Wireless |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bausch Health Companies |
Tower One and Bausch Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tower One and Bausch Health
The main advantage of trading using opposite Tower One and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower One 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.Tower One vs. Nippon Telegraph and | Tower One vs. Superior Plus Corp | Tower One vs. NMI Holdings | Tower One vs. SIVERS SEMICONDUCTORS AB |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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