Correlation Between Oasmia Pharmaceutical and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Oasmia Pharmaceutical 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 Oasmia Pharmaceutical and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasmia Pharmaceutical AB and Bausch Health Companies, you can compare the effects of market volatilities on Oasmia Pharmaceutical 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 Oasmia Pharmaceutical with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasmia Pharmaceutical and Bausch Health.
Diversification Opportunities for Oasmia Pharmaceutical and Bausch Health
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oasmia and Bausch is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oasmia Pharmaceutical AB 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 Oasmia Pharmaceutical 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 Oasmia Pharmaceutical AB 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 Oasmia Pharmaceutical i.e., Oasmia Pharmaceutical and Bausch Health go up and down completely randomly.
Pair Corralation between Oasmia Pharmaceutical and Bausch Health
If you would invest 656.00 in Bausch Health Companies on August 29, 2024 and sell it today you would earn a total of 133.00 from holding Bausch Health Companies or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Oasmia Pharmaceutical AB vs. Bausch Health Companies
Performance |
| Timeline |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bausch Health Companies |
Oasmia Pharmaceutical and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasmia Pharmaceutical and Bausch Health
The main advantage of trading using opposite Oasmia Pharmaceutical and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasmia Pharmaceutical 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.| Oasmia Pharmaceutical vs. Ryanair Holdings PLC | Oasmia Pharmaceutical vs. LENSAR Inc | Oasmia Pharmaceutical vs. Cumberland Pharmaceuticals | Oasmia Pharmaceutical vs. Finnair Oyj |
| Bausch Health vs. Viatris | Bausch Health vs. Catalent | Bausch Health vs. Tilray Inc | Bausch Health vs. Zoetis Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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