Correlation Between Bausch Health and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Bausch Health and ATRYS HEALTH 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 ATRYS HEALTH 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 ATRYS HEALTH SA, you can compare the effects of market volatilities on Bausch Health and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and ATRYS HEALTH.
Diversification Opportunities for Bausch Health and ATRYS HEALTH
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bausch and ATRYS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of Bausch Health i.e., Bausch Health and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Bausch Health and ATRYS HEALTH
Assuming the 90 days horizon Bausch Health Companies is expected to generate 1.79 times more return on investment than ATRYS HEALTH. However, Bausch Health is 1.79 times more volatile than ATRYS HEALTH SA. It trades about 0.05 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.02 per unit of risk. If you would invest 745.00 in Bausch Health Companies on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Bausch Health Companies or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bausch Health Companies vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Bausch Health Companies |
| ATRYS HEALTH SA |
Bausch Health and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Health and ATRYS HEALTH
The main advantage of trading using opposite Bausch Health and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| Bausch Health vs. Eisai Co | Bausch Health vs. Shionogi Co | Bausch Health vs. Superior Plus Corp | Bausch Health vs. Origin Agritech |
| ATRYS HEALTH vs. VARIOUS EATERIES LS | ATRYS HEALTH vs. National Storage Affiliates | ATRYS HEALTH vs. VIVA WINE GROUP | ATRYS HEALTH vs. ITALIAN WINE BRANDS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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