Correlation Between Grupo Aeroportuario and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Bausch Lomb 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 Grupo Aeroportuario and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Aeroportuario del and Bausch Lomb Corp, you can compare the effects of market volatilities on Grupo Aeroportuario and Bausch Lomb 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 Grupo Aeroportuario with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Bausch Lomb.
Diversification Opportunities for Grupo Aeroportuario and Bausch Lomb
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Bausch is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Bausch Lomb Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Lomb Corp and Grupo Aeroportuario 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 Grupo Aeroportuario del are associated (or correlated) with Bausch Lomb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Lomb Corp has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Bausch Lomb go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Bausch Lomb
Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 0.95 times more return on investment than Bausch Lomb. However, Grupo Aeroportuario del is 1.06 times less risky than Bausch Lomb. It trades about -0.05 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about -0.06 per unit of risk. If you would invest 26,727 in Grupo Aeroportuario del on August 31, 2024 and sell it today you would lose (531.00) from holding Grupo Aeroportuario del or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Bausch Lomb Corp
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Bausch Lomb Corp |
Grupo Aeroportuario and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Bausch Lomb
The main advantage of trading using opposite Grupo Aeroportuario and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Bausch Lomb 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 Lomb will offset losses from the drop in Bausch Lomb's long position.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
| Bausch Lomb vs. The Cooper Companies, | Bausch Lomb vs. ICU Medical | Bausch Lomb vs. Hologic | Bausch Lomb vs. Becton Dickinson and |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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