Correlation Between Bausch Health and Ivanhoe Energy
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Ivanhoe Energy 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 Ivanhoe Energy 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 Ivanhoe Energy, you can compare the effects of market volatilities on Bausch Health and Ivanhoe Energy 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 Ivanhoe Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Ivanhoe Energy.
Diversification Opportunities for Bausch Health and Ivanhoe Energy
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Ivanhoe is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Ivanhoe Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivanhoe Energy 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 Ivanhoe Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivanhoe Energy has no effect on the direction of Bausch Health i.e., Bausch Health and Ivanhoe Energy go up and down completely randomly.
Pair Corralation between Bausch Health and Ivanhoe Energy
Assuming the 90 days trading horizon Bausch Health Companies is expected to under-perform the Ivanhoe Energy. But the stock apears to be less risky and, when comparing its historical volatility, Bausch Health Companies is 1.64 times less risky than Ivanhoe Energy. The stock trades about -0.08 of its potential returns per unit of risk. The Ivanhoe Energy is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,184 in Ivanhoe Energy on August 30, 2025 and sell it today you would earn a total of 849.00 from holding Ivanhoe Energy or generate 71.71% 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. Ivanhoe Energy
Performance |
| Timeline |
| Bausch Health Companies |
| Ivanhoe Energy |
Bausch Health and Ivanhoe Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Ivanhoe Energy
The main advantage of trading using opposite Bausch Health and Ivanhoe Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Ivanhoe Energy 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 Ivanhoe Energy will offset losses from the drop in Ivanhoe Energy's long position.| Bausch Health vs. Computer Modelling Group | Bausch Health vs. Capstone Mining Corp | Bausch Health vs. Algonquin Power Utilities | Bausch Health vs. Vizsla Silver Corp |
| Ivanhoe Energy vs. Diversified Royalty Corp | Ivanhoe Energy vs. A W FOOD | Ivanhoe Energy vs. Diamond Estates Wines | Ivanhoe Energy vs. Maple Leaf Foods |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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