Correlation Between VIP Entertainment and Bausch Health

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Can any of the company-specific risk be diversified away by investing in both VIP Entertainment 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 VIP Entertainment and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIP Entertainment Technologies and Bausch Health Companies, you can compare the effects of market volatilities on VIP Entertainment 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 VIP Entertainment with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIP Entertainment and Bausch Health.

Diversification Opportunities for VIP Entertainment and Bausch Health

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between VIP and Bausch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIP Entertainment Technologies 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 VIP Entertainment 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 VIP Entertainment Technologies 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 VIP Entertainment i.e., VIP Entertainment and Bausch Health go up and down completely randomly.

Pair Corralation between VIP Entertainment and Bausch Health

If you would invest  0.50  in VIP Entertainment Technologies on August 28, 2025 and sell it today you would earn a total of  0.00  from holding VIP Entertainment Technologies or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

VIP Entertainment Technologies  vs.  Bausch Health Companies

 Performance 
       Timeline  
VIP Entertainment 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days VIP Entertainment Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, VIP Entertainment is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Bausch Health Companies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Bausch Health Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

VIP Entertainment and Bausch Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VIP Entertainment and Bausch Health

The main advantage of trading using opposite VIP Entertainment and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIP Entertainment 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.
The idea behind VIP Entertainment Technologies and Bausch Health Companies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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