Correlation Between Bausch Health and Fresh2
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Fresh2 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 Fresh2 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 Fresh2 Group, you can compare the effects of market volatilities on Bausch Health and Fresh2 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 Fresh2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Fresh2.
Diversification Opportunities for Bausch Health and Fresh2
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Fresh2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Fresh2 Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresh2 Group 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 Fresh2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresh2 Group has no effect on the direction of Bausch Health i.e., Bausch Health and Fresh2 go up and down completely randomly.
Pair Corralation between Bausch Health and Fresh2
If you would invest 746.00 in Bausch Health Companies on December 1, 2024 and sell it today you would lose (2.00) from holding Bausch Health Companies or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bausch Health Companies vs. Fresh2 Group
Performance |
| Timeline |
| Bausch Health Companies |
| Fresh2 Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bausch Health and Fresh2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Fresh2
The main advantage of trading using opposite Bausch Health and Fresh2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Fresh2 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 Fresh2 will offset losses from the drop in Fresh2's long position.| Bausch Health vs. Viatris | Bausch Health vs. Tilray Inc | Bausch Health vs. Zoetis Inc | Bausch Health vs. Emergent Biosolutions |
| Fresh2 vs. Uber Technologies | Fresh2 vs. NetSol Technologies | Fresh2 vs. Sphere 3D Corp | Fresh2 vs. Alvotech |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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