Correlation Between Bausch Health and DGL Investments
Can any of the company-specific risk be diversified away by investing in both Bausch Health and DGL Investments 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 DGL Investments 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 DGL Investments No1, you can compare the effects of market volatilities on Bausch Health and DGL Investments 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 DGL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and DGL Investments.
Diversification Opportunities for Bausch Health and DGL Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and DGL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and DGL Investments No1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGL Investments No1 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 DGL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGL Investments No1 has no effect on the direction of Bausch Health i.e., Bausch Health and DGL Investments go up and down completely randomly.
Pair Corralation between Bausch Health and DGL Investments
If you would invest 11.00 in DGL Investments No1 on August 26, 2025 and sell it today you would earn a total of 0.00 from holding DGL Investments No1 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. DGL Investments No1
Performance |
| Timeline |
| Bausch Health Companies |
| DGL Investments No1 |
Bausch Health and DGL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and DGL Investments
The main advantage of trading using opposite Bausch Health and DGL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, DGL Investments 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 DGL Investments will offset losses from the drop in DGL Investments' long position.| Bausch Health vs. Getty Copper | Bausch Health vs. Waste Management, | Bausch Health vs. Wilmington Capital Management | Bausch Health vs. Arizona Metals Corp |
| DGL Investments vs. JPMorgan Chase Co | DGL Investments vs. Bank of America | DGL Investments vs. BNP Paribas CDR | DGL Investments vs. CITIGROUP CDR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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