Correlation Between Vir Biotechnology and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Vir Biotechnology 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 Vir Biotechnology and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vir Biotechnology and Bausch Health Companies, you can compare the effects of market volatilities on Vir Biotechnology 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 Vir Biotechnology with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vir Biotechnology and Bausch Health.
Diversification Opportunities for Vir Biotechnology and Bausch Health
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vir and Bausch is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vir Biotechnology 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 Vir Biotechnology 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 Vir Biotechnology 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 Vir Biotechnology i.e., Vir Biotechnology and Bausch Health go up and down completely randomly.
Pair Corralation between Vir Biotechnology and Bausch Health
Considering the 90-day investment horizon Vir Biotechnology is expected to generate 1.26 times more return on investment than Bausch Health. However, Vir Biotechnology is 1.26 times more volatile than Bausch Health Companies. It trades about 0.1 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.01 per unit of risk. If you would invest 523.00 in Vir Biotechnology on September 11, 2025 and sell it today you would earn a total of 132.00 from holding Vir Biotechnology or generate 25.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vir Biotechnology vs. Bausch Health Companies
Performance |
| Timeline |
| Vir Biotechnology |
| Bausch Health Companies |
Vir Biotechnology and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vir Biotechnology and Bausch Health
The main advantage of trading using opposite Vir Biotechnology and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vir Biotechnology 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.| Vir Biotechnology vs. Cabaletta Bio | Vir Biotechnology vs. Lexeo Therapeutics, Common | Vir Biotechnology vs. ProQR Therapeutics BV | Vir Biotechnology vs. Entrada Therapeutics |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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