Correlation Between Baxter International and Ionis Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Baxter International and Ionis Pharmaceuticals 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 Baxter International and Ionis Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baxter International and Ionis Pharmaceuticals, you can compare the effects of market volatilities on Baxter International and Ionis Pharmaceuticals 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 Baxter International with a short position of Ionis Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baxter International and Ionis Pharmaceuticals.

Diversification Opportunities for Baxter International and Ionis Pharmaceuticals

-0.61

Correlation Coefficient

Baxter International  Ionis Pharmaceuticals

Excellent diversification

The 3 months correlation between Baxter and Ionis is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Baxter International and Ionis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ionis Pharmaceuticals and Baxter International 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 Baxter International are associated (or correlated) with Ionis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ionis Pharmaceuticals has no effect on the direction of Baxter International i.e., Baxter International and Ionis Pharmaceuticals go up and down completely randomly.

Pair Corralation between Baxter International and Ionis Pharmaceuticals

Considering the 90-day investment horizon Baxter International is expected to under-perform the Ionis Pharmaceuticals. In addition to that, Baxter International is 1.36 times more volatile than Ionis Pharmaceuticals. It trades about -0.16 of its total potential returns per unit of risk. Ionis Pharmaceuticals is currently generating about 0.19 per unit of volatility. If you would invest  6,404  in Ionis Pharmaceuticals on September 11, 2025 and sell it today you would earn a total of  1,516  from holding Ionis Pharmaceuticals or generate 23.67% return on investment over 90 days.

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

Baxter International  vs.  Ionis Pharmaceuticals

Baxter International

Risk-Adjusted Performance

Weakest

Over the last 90 days Baxter International 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 basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Ionis Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ionis Pharmaceuticals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Ionis Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Baxter International and Ionis Pharmaceuticals

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

The idea behind Baxter International and Ionis Pharmaceuticals 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.