Correlation Between Bausch Health and North American
Can any of the company-specific risk be diversified away by investing in both Bausch Health and North American 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 North American 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 North American Construction, you can compare the effects of market volatilities on Bausch Health and North American 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 North American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and North American.
Diversification Opportunities for Bausch Health and North American
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bausch and North is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and North American Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North American Const 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 North American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North American Const has no effect on the direction of Bausch Health i.e., Bausch Health and North American go up and down completely randomly.
Pair Corralation between Bausch Health and North American
Assuming the 90 days trading horizon Bausch Health Companies is expected to under-perform the North American. In addition to that, Bausch Health is 1.37 times more volatile than North American Construction. It trades about -0.01 of its total potential returns per unit of risk. North American Construction is currently generating about 0.05 per unit of volatility. If you would invest 1,846 in North American Construction on September 8, 2025 and sell it today you would earn a total of 104.00 from holding North American Construction or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. North American Construction
Performance |
| Timeline |
| Bausch Health Companies |
| North American Const |
Bausch Health and North American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and North American
The main advantage of trading using opposite Bausch Health and North American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, North American 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 North American will offset losses from the drop in North American's long position.| Bausch Health vs. 2028 Investment Grade | Bausch Health vs. NeXGold Mining Corp | Bausch Health vs. Magna Mining | Bausch Health vs. Labrador Iron Ore |
| North American vs. MTY Food Group | North American vs. Waste Management, | North American vs. Rogers Communications | North American vs. Uniserve Communications Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |