Correlation Between Bausch Health and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Investors, you can compare the effects of market volatilities on Bausch Health and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Tekla Healthcare.
Diversification Opportunities for Bausch Health and Tekla Healthcare
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bausch and Tekla is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Bausch Health i.e., Bausch Health and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Bausch Health and Tekla Healthcare
Considering the 90-day investment horizon Bausch Health Companies is expected to under-perform the Tekla Healthcare. In addition to that, Bausch Health is 2.23 times more volatile than Tekla Healthcare Investors. It trades about -0.01 of its total potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.17 per unit of volatility. If you would invest 1,630 in Tekla Healthcare Investors on September 6, 2025 and sell it today you would earn a total of 273.00 from holding Tekla Healthcare Investors or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Bausch Health Companies |
| Tekla Healthcare Inv |
Bausch Health and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Tekla Healthcare
The main advantage of trading using opposite Bausch Health and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Bausch Health vs. Shaanxi Kanghui Pharm | Bausch Health vs. Kestrel Group, | Bausch Health vs. Next Science | Bausch Health vs. Cardiol Therapeutics Class |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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