Correlation Between Bausch Health and Lexeo Therapeutics,

Can any of the company-specific risk be diversified away by investing in both Bausch Health and Lexeo Therapeutics, 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 Lexeo Therapeutics, 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 Lexeo Therapeutics, Common, you can compare the effects of market volatilities on Bausch Health and Lexeo Therapeutics, 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 Lexeo Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Health and Lexeo Therapeutics,.

Diversification Opportunities for Bausch Health and Lexeo Therapeutics,

0.65

Correlation Coefficient

Bausch Health  Lexeo Therapeutics,

Poor diversification

The 3 months correlation between Bausch and Lexeo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Health Companies and Lexeo Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexeo Therapeutics, 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 Lexeo Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexeo Therapeutics, has no effect on the direction of Bausch Health i.e., Bausch Health and Lexeo Therapeutics, go up and down completely randomly.

Pair Corralation between Bausch Health and Lexeo Therapeutics,

Considering the 90-day investment horizon Bausch Health Companies is expected to generate 0.74 times more return on investment than Lexeo Therapeutics,. However, Bausch Health Companies is 1.36 times less risky than Lexeo Therapeutics,. It trades about 0.02 of its potential returns per unit of risk. Lexeo Therapeutics, Common is currently generating about -0.51 per unit of risk. If you would invest  746.00  in Bausch Health Companies on December 1, 2024 and sell it today you would lose (2.00) from holding Bausch Health Companies or give up 0.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bausch Health Companies  vs.  Lexeo Therapeutics, Common

Bausch Health Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bausch Health Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Bausch Health is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Lexeo Therapeutics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lexeo Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bausch Health and Lexeo Therapeutics,

The main advantage of trading using opposite Bausch Health and Lexeo Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Health position performs unexpectedly, Lexeo Therapeutics, 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 Lexeo Therapeutics, will offset losses from the drop in Lexeo Therapeutics,'s long position.

The idea behind Bausch Health Companies and Lexeo Therapeutics, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.