Correlation Between Bausch Lomb and EDVLN
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By analyzing existing cross correlation between Bausch Lomb Corp and EDVLN 5 14 OCT 26, you can compare the effects of market volatilities on Bausch Lomb and EDVLN 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 EDVLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and EDVLN.
Diversification Opportunities for Bausch Lomb and EDVLN
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bausch and EDVLN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and EDVLN 5 14 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDVLN 5 14 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 EDVLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDVLN 5 14 has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and EDVLN go up and down completely randomly.
Pair Corralation between Bausch Lomb and EDVLN
Given the investment horizon of 90 days Bausch Lomb is expected to generate 2.04 times less return on investment than EDVLN. In addition to that, Bausch Lomb is 1.89 times more volatile than EDVLN 5 14 OCT 26. It trades about 0.03 of its total potential returns per unit of risk. EDVLN 5 14 OCT 26 is currently generating about 0.12 per unit of volatility. If you would invest 8,565 in EDVLN 5 14 OCT 26 on September 3, 2024 and sell it today you would earn a total of 1,210 from holding EDVLN 5 14 OCT 26 or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 20.61% |
| Values | Daily Returns |
Bausch Lomb Corp vs. EDVLN 5 14 OCT 26
Performance |
| Timeline |
| Bausch Lomb Corp |
| EDVLN 5 14 |
Bausch Lomb and EDVLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Lomb and EDVLN
The main advantage of trading using opposite Bausch Lomb and EDVLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, EDVLN 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 EDVLN will offset losses from the drop in EDVLN's long position.| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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