Correlation Between Asure Software and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Asure Software 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 Asure Software and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Bausch Lomb Corp, you can compare the effects of market volatilities on Asure Software 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 Asure Software with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Bausch Lomb.
Diversification Opportunities for Asure Software and Bausch Lomb
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asure and Bausch is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software 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 Asure Software 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 Asure Software 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 Asure Software i.e., Asure Software and Bausch Lomb go up and down completely randomly.
Pair Corralation between Asure Software and Bausch Lomb
Given the investment horizon of 90 days Asure Software is expected to generate 1.94 times more return on investment than Bausch Lomb. However, Asure Software is 1.94 times more volatile than Bausch Lomb Corp. It trades about 0.11 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about 0.07 per unit of risk. If you would invest 855.00 in Asure Software on September 3, 2024 and sell it today you would earn a total of 124.00 from holding Asure Software or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. Bausch Lomb Corp
Performance |
| Timeline |
| Asure Software |
| Bausch Lomb Corp |
Asure Software and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Bausch Lomb
The main advantage of trading using opposite Asure Software and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software 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.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |