Correlation Between Bausch Lomb and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both Bausch Lomb and Summit Environmental 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 Summit Environmental 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 Summit Environmental, you can compare the effects of market volatilities on Bausch Lomb and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and Summit Environmental.
Diversification Opportunities for Bausch Lomb and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bausch and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and Summit Environmental go up and down completely randomly.
Pair Corralation between Bausch Lomb and Summit Environmental
If you would invest 1,616 in Bausch Lomb Corp on August 31, 2024 and sell it today you would earn a total of 366.00 from holding Bausch Lomb Corp or generate 22.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bausch Lomb Corp vs. Summit Environmental
Performance |
| Timeline |
| Bausch Lomb Corp |
| Summit Environmental |
Bausch Lomb and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Lomb and Summit Environmental
The main advantage of trading using opposite Bausch Lomb and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| Bausch Lomb vs. The Cooper Companies, | Bausch Lomb vs. ICU Medical | Bausch Lomb vs. Hologic | Bausch Lomb vs. Becton Dickinson and |
| Summit Environmental vs. Fast Retailing Co | Summit Environmental vs. National Vision Holdings | Summit Environmental vs. Lincoln Educational Services | Summit Environmental vs. Coursera |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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