Correlation Between Bausch Lomb and Lord Global
Can any of the company-specific risk be diversified away by investing in both Bausch Lomb and Lord Global 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 Lomb and Lord Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Lomb Corp and Lord Global Corp, you can compare the effects of market volatilities on Bausch Lomb and Lord Global 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 Lomb with a short position of Lord Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and Lord Global.
Diversification Opportunities for Bausch Lomb and Lord Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and Lord Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Global Corp and Bausch Lomb 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 Lomb Corp are associated (or correlated) with Lord Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Global Corp has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and Lord Global go up and down completely randomly.
Pair Corralation between Bausch Lomb and Lord Global
If you would invest 1,565 in Bausch Lomb Corp on September 12, 2024 and sell it today you would earn a total of 251.00 from holding Bausch Lomb Corp or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Bausch Lomb Corp vs. Lord Global Corp
Performance |
| Timeline |
| Bausch Lomb Corp |
| Lord Global Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bausch Lomb and Lord Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Lomb and Lord Global
The main advantage of trading using opposite Bausch Lomb and Lord Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, Lord Global 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 Lord Global will offset losses from the drop in Lord Global's long position.| Bausch Lomb vs. The Cooper Companies, | Bausch Lomb vs. ICU Medical | Bausch Lomb vs. Hologic | Bausch Lomb vs. Becton Dickinson and |
| Lord Global vs. FARO Technologies | Lord Global vs. Asure Software | Lord Global vs. Lipocine | Lord Global vs. Analog Devices |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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