Correlation Between Bausch Health and Collplant Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Collplant Biotechnologies 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 Collplant Biotechnologies 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 Collplant Biotechnologies, you can compare the effects of market volatilities on Bausch Health and Collplant Biotechnologies 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 Collplant Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Collplant Biotechnologies.
Diversification Opportunities for Bausch Health and Collplant Biotechnologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Collplant is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Collplant Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collplant Biotechnologies 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 Collplant Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collplant Biotechnologies has no effect on the direction of Bausch Health i.e., Bausch Health and Collplant Biotechnologies go up and down completely randomly.
Pair Corralation between Bausch Health and Collplant Biotechnologies
Considering the 90-day investment horizon Bausch Health Companies is expected to generate 0.86 times more return on investment than Collplant Biotechnologies. However, Bausch Health Companies is 1.17 times less risky than Collplant Biotechnologies. It trades about 0.02 of its potential returns per unit of risk. Collplant Biotechnologies is currently generating about -0.01 per unit of risk. If you would invest 765.00 in Bausch Health Companies on September 2, 2024 and sell it today you would earn a total of 72.00 from holding Bausch Health Companies or generate 9.41% 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. Collplant Biotechnologies
Performance |
| Timeline |
| Bausch Health Companies |
| Collplant Biotechnologies |
Bausch Health and Collplant Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Collplant Biotechnologies
The main advantage of trading using opposite Bausch Health and Collplant Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Collplant Biotechnologies 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 Collplant Biotechnologies will offset losses from the drop in Collplant Biotechnologies' long position.| Bausch Health vs. Crinetics Pharmaceuticals | Bausch Health vs. Enanta Pharmaceuticals | Bausch Health vs. Amicus Therapeutics | Bausch Health vs. Connect Biopharma Holdings |
| Collplant Biotechnologies vs. Keros Therapeutics | Collplant Biotechnologies vs. Merus BV | Collplant Biotechnologies vs. Vericel Corp Ord | Collplant Biotechnologies vs. Century Therapeutics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |