Correlation Between ATRYS HEALTH and Bausch Health
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH 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 ATRYS HEALTH and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRYS HEALTH SA and Bausch Health Companies, you can compare the effects of market volatilities on ATRYS HEALTH 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 ATRYS HEALTH with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Bausch Health.
Diversification Opportunities for ATRYS HEALTH and Bausch Health
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and Bausch is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA 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 ATRYS 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 ATRYS HEALTH SA 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 ATRYS HEALTH i.e., ATRYS HEALTH and Bausch Health go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Bausch Health
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 0.87 times more return on investment than Bausch Health. However, ATRYS HEALTH SA is 1.15 times less risky than Bausch Health. It trades about 0.05 of its potential returns per unit of risk. Bausch Health Companies is currently generating about 0.01 per unit of risk. If you would invest 303.00 in ATRYS HEALTH SA on September 26, 2024 and sell it today you would earn a total of 20.00 from holding ATRYS HEALTH SA or generate 6.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ATRYS HEALTH SA vs. Bausch Health Companies
Performance |
Timeline |
ATRYS HEALTH SA |
Bausch Health Companies |
ATRYS HEALTH and Bausch Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATRYS HEALTH and Bausch Health
The main advantage of trading using opposite ATRYS HEALTH and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH 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.ATRYS HEALTH vs. Novo Nordisk AS | ATRYS HEALTH vs. Mercedes Benz Group AG | ATRYS HEALTH vs. Vertex Pharmaceuticals Incorporated | ATRYS HEALTH vs. Moderna |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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