Correlation Between Bausch Health and Precigen
Can any of the company-specific risk be diversified away by investing in both Bausch Health and Precigen 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 Precigen 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 Precigen, you can compare the effects of market volatilities on Bausch Health and Precigen 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 Precigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Precigen.
Diversification Opportunities for Bausch Health and Precigen
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bausch and Precigen is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Precigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precigen 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 Precigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precigen has no effect on the direction of Bausch Health i.e., Bausch Health and Precigen go up and down completely randomly.
Pair Corralation between Bausch Health and Precigen
Considering the 90-day investment horizon Bausch Health Companies is expected to under-perform the Precigen. But the stock apears to be less risky and, when comparing its historical volatility, Bausch Health Companies is 2.01 times less risky than Precigen. The stock trades about -0.31 of its potential returns per unit of risk. The Precigen is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Precigen on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Precigen or generate 13.41% 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. Precigen
Performance |
| Timeline |
| Bausch Health Companies |
| Precigen |
Bausch Health and Precigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and Precigen
The main advantage of trading using opposite Bausch Health and Precigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Precigen 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 Precigen will offset losses from the drop in Precigen's long position.| Bausch Health vs. Crinetics Pharmaceuticals | Bausch Health vs. Enanta Pharmaceuticals | Bausch Health vs. Amicus Therapeutics | Bausch Health vs. Connect Biopharma Holdings |
| Precigen vs. CorMedix | Precigen vs. Sangamo Therapeutics | Precigen vs. Aptose Biosciences | Precigen vs. Corvus Pharmaceuticals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |