Correlation Between Bausch Health and Helix BioPharma
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Helix BioPharma 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 Helix BioPharma 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 Helix BioPharma Corp, you can compare the effects of market volatilities on Bausch Health and Helix BioPharma 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 Helix BioPharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Helix BioPharma.
Diversification Opportunities for Bausch Health and Helix BioPharma
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Helix is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Helix BioPharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix BioPharma Corp 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 Helix BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix BioPharma Corp has no effect on the direction of Bausch Health i.e., Bausch Health and Helix BioPharma go up and down completely randomly.
Pair Corralation between Bausch Health and Helix BioPharma
Assuming the 90 days trading horizon Bausch Health Companies is expected to under-perform the Helix BioPharma. But the stock apears to be less risky and, when comparing its historical volatility, Bausch Health Companies is 5.4 times less risky than Helix BioPharma. The stock trades about -0.17 of its potential returns per unit of risk. The Helix BioPharma Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 76.00 in Helix BioPharma Corp on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Helix BioPharma Corp or generate 14.47% 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. Helix BioPharma Corp
Performance |
| Timeline |
| Bausch Health Companies |
| Helix BioPharma Corp |
Bausch Health and Helix BioPharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Helix BioPharma
The main advantage of trading using opposite Bausch Health and Helix BioPharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Helix BioPharma 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 Helix BioPharma will offset losses from the drop in Helix BioPharma's long position.| Bausch Health vs. Westaim Corp | Bausch Health vs. Pulse Seismic | Bausch Health vs. Quarterhill | Bausch Health vs. TECSYS Inc |
| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges |