Correlation Between DAX Index and Bausch Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Bausch Health Companies, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Bausch Health.
Diversification Opportunities for DAX Index and Bausch Health
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and Bausch is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Bausch Health go up and down completely randomly.
Pair Corralation between DAX Index and Bausch Health
Assuming the 90 days trading horizon DAX Index is expected to generate 1.06 times less return on investment than Bausch Health. But when comparing it to its historical volatility, DAX Index is 3.99 times less risky than Bausch Health. It trades about 0.18 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 711.00 in Bausch Health Companies on December 1, 2024 and sell it today you would earn a total of 19.00 from holding Bausch Health Companies or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Bausch Health Companies
Performance |
| Timeline |
DAX Index and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Bausch Health Companies
Pair trading matchups for Bausch Health
Pair Trading with DAX Index and Bausch Health
The main advantage of trading using opposite DAX Index and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Bausch Health vs. SBA Communications Corp | Bausch Health vs. Iridium Communications | Bausch Health vs. Richardson Electronics | Bausch Health vs. Chengdu PUTIAN Telecommunications |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |