BAX vs BHC: Correlation
Measured on weekly returns over the past three years, Baxter International (BAX) and Bausch Health Companies Inc. (BHC) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BAX and BHC?
Across a 3-year window, the weekly returns of BAX and BHC correlate at 0.40, moderate. Recent behaviour matches the longer record: 0.38 over 1 year against 0.40 over 3. Stretching to 5 years gives 0.35, with an annualized covariance of 1039.3 %².
Within BAX's tracked universe of 43 assets, BHC comes in at #28 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months BAX outperformed by 19.9 percentage points (+6.6% for BAX against -13.3% for BHC). One caveat on sizing: BHC is 1.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BAX vs BHC: side by side
| BAX (Baxter International) | BHC (Bausch Health Companies Inc.) | |
|---|---|---|
| 1-year return | +6.6% | -13.3% |
| 5-year return | -62.2% | -78.4% |
| Volatility (ann.) | 38.4% | 67.6% |
| Beta vs S&P 500 | 0.89 | 0.94 |
| Max drawdown (3Y) | -62.4% | -59.3% |
| Market cap | $13.4B | $2.4B |
| P/E (trailing) | – | – |
| Dividend yield | 0.75% | 0.00% |
| Sector / category | Health Care | US Listed |
Year-by-year returns
| Year | BAX | BHC |
|---|---|---|
| 2022 | -39.6% | -77.3% |
| 2023 | -21.9% | +27.7% |
| 2024 | -22.4% | +0.5% |
| 2025 | -33.3% | -13.8% |
| 2026 | +35.8% | -9.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BAX and BHC good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between BAX and BHC?
Using weekly returns as of 2026-08-27: 0.40 over 3 years, with 0.38 over the last year and 0.35 over 5 years.
Is BHC a good diversifier for BAX?
Yes, to a useful degree: a correlation of 0.40 leaves real independence between the two, which historically damped combined volatility.
What does a correlation of 0.40 mean?
A reading of 0.40 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Hubs: BAX correlations · BHC correlations
