Correlation Between Drugs Made and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Drugs Made and Bausch Health 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 Drugs Made and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Drugs Made In and Bausch Health Companies, you can compare the effects of market volatilities on Drugs Made and Bausch Health 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 Drugs Made with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Drugs Made and Bausch Health.
Diversification Opportunities for Drugs Made and Bausch Health
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Drugs and Bausch is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Drugs Made In and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and Drugs Made 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 Drugs Made In are associated (or correlated) with Bausch Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Drugs Made i.e., Drugs Made and Bausch Health go up and down completely randomly.
Pair Corralation between Drugs Made and Bausch Health
Given the investment horizon of 90 days Drugs Made In is expected to generate 0.04 times more return on investment than Bausch Health. However, Drugs Made In is 23.6 times less risky than Bausch Health. It trades about 0.07 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.0 per unit of risk. If you would invest 1,030 in Drugs Made In on September 12, 2025 and sell it today you would earn a total of 6.00 from holding Drugs Made In or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Drugs Made In vs. Bausch Health Companies
Performance |
| Timeline |
| Drugs Made In |
| Bausch Health Companies |
Drugs Made and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Drugs Made and Bausch Health
The main advantage of trading using opposite Drugs Made and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Drugs Made position performs unexpectedly, Bausch Health 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 Bausch Health will offset losses from the drop in Bausch Health's long position.| Drugs Made vs. SIM Acquisition Corp | Drugs Made vs. Mountain Lake Acquisition | Drugs Made vs. Berto Acquisition Corp | Drugs Made vs. Centurion Acquisition Corp |
| Bausch Health vs. HUTCHMED DRC | Bausch Health vs. Perrigo Company PLC | Bausch Health vs. Concentra Group Holdings | Bausch Health vs. Dentsply Sirona |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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