Correlation Between Bausch Health and Brookfield Infrastructure
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Brookfield Infrastructure 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 Bausch Health and Brookfield Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Health Companies and Brookfield Infrastructure Partners, you can compare the effects of market volatilities on Bausch Health and Brookfield Infrastructure 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 Bausch Health with a short position of Brookfield Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Brookfield Infrastructure.
Diversification Opportunities for Bausch Health and Brookfield Infrastructure
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bausch and Brookfield is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Brookfield Infrastructure Part in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Infrastructure and Bausch Health 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 Bausch Health Companies are associated (or correlated) with Brookfield Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Infrastructure has no effect on the direction of Bausch Health i.e., Bausch Health and Brookfield Infrastructure go up and down completely randomly.
Pair Corralation between Bausch Health and Brookfield Infrastructure
Assuming the 90 days trading horizon Bausch Health is expected to generate 30.19 times less return on investment than Brookfield Infrastructure. In addition to that, Bausch Health is 2.99 times more volatile than Brookfield Infrastructure Partners. It trades about 0.0 of its total potential returns per unit of risk. Brookfield Infrastructure Partners is currently generating about 0.25 per unit of volatility. If you would invest 4,223 in Brookfield Infrastructure Partners on September 3, 2025 and sell it today you would earn a total of 760.00 from holding Brookfield Infrastructure Partners or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Brookfield Infrastructure Part
Performance |
| Timeline |
| Bausch Health Companies |
| Brookfield Infrastructure |
Bausch Health and Brookfield Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Brookfield Infrastructure
The main advantage of trading using opposite Bausch Health and Brookfield Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Brookfield Infrastructure 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 Brookfield Infrastructure will offset losses from the drop in Brookfield Infrastructure's long position.| Bausch Health vs. Data Communications Management | Bausch Health vs. Mako Mining Corp | Bausch Health vs. Primaris Retail RE | Bausch Health vs. Cogeco Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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