Correlation Between Bausch Health and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical 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 Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Bausch Health and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Oasmia Pharmaceutical.
Diversification Opportunities for Bausch Health and Oasmia Pharmaceutical
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bausch and Oasmia is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Bausch Health i.e., Bausch Health and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between Bausch Health and Oasmia Pharmaceutical
If you would invest 6.00 in Oasmia Pharmaceutical AB on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Oasmia Pharmaceutical AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bausch Health Companies vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| Bausch Health Companies |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bausch Health and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Oasmia Pharmaceutical
The main advantage of trading using opposite Bausch Health and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| Bausch Health vs. Crinetics Pharmaceuticals | Bausch Health vs. Enanta Pharmaceuticals | Bausch Health vs. Amicus Therapeutics | Bausch Health vs. Connect Biopharma Holdings |
| Oasmia Pharmaceutical vs. Artisan Partners Asset | Oasmia Pharmaceutical vs. Stepstone Group | Oasmia Pharmaceutical vs. National Vision Holdings | Oasmia Pharmaceutical vs. SEI Investments |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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