Correlation Between Dynavax Technologies and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Dynavax Technologies and Bausch 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 Dynavax Technologies and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynavax Technologies and Bausch Health Companies, you can compare the effects of market volatilities on Dynavax Technologies and Bausch 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 Dynavax Technologies with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynavax Technologies and Bausch Health.
Diversification Opportunities for Dynavax Technologies and Bausch Health
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dynavax and Bausch is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dynavax Technologies and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and Dynavax Technologies 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 Dynavax Technologies are associated (or correlated) with Bausch Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Dynavax Technologies i.e., Dynavax Technologies and Bausch Health go up and down completely randomly.
Pair Corralation between Dynavax Technologies and Bausch Health
Given the investment horizon of 90 days Dynavax Technologies is expected to generate 1.19 times more return on investment than Bausch Health. However, Dynavax Technologies is 1.19 times more volatile than Bausch Health Companies. It trades about 0.14 of its potential returns per unit of risk. Bausch Health Companies is currently generating about -0.15 per unit of risk. If you would invest 1,185 in Dynavax Technologies on September 1, 2024 and sell it today you would earn a total of 106.00 from holding Dynavax Technologies or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynavax Technologies vs. Bausch Health Companies
Performance |
| Timeline |
| Dynavax Technologies |
| Bausch Health Companies |
Dynavax Technologies and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynavax Technologies and Bausch Health
The main advantage of trading using opposite Dynavax Technologies and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynavax Technologies position performs unexpectedly, Bausch 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 Bausch Health will offset losses from the drop in Bausch Health's long position.| Dynavax Technologies vs. Alkermes Plc | Dynavax Technologies vs. Neurocrine Biosciences | Dynavax Technologies vs. Intracellular Th | Dynavax Technologies vs. Aquestive Therapeutics |
| Bausch Health vs. Crinetics Pharmaceuticals | Bausch Health vs. Enanta Pharmaceuticals | Bausch Health vs. Amicus Therapeutics | Bausch Health vs. Connect Biopharma Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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