Correlation Between Bausch Lomb and TOYOTA
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By analyzing existing cross correlation between Bausch Lomb Corp and TOYOTA 2362 25 MAR 31, you can compare the effects of market volatilities on Bausch Lomb and TOYOTA 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 TOYOTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and TOYOTA.
Diversification Opportunities for Bausch Lomb and TOYOTA
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bausch and TOYOTA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and TOYOTA 2362 25 MAR 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOYOTA 2362 25 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 TOYOTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOYOTA 2362 25 has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and TOYOTA go up and down completely randomly.
Pair Corralation between Bausch Lomb and TOYOTA
Given the investment horizon of 90 days Bausch Lomb Corp is expected to generate 2.63 times more return on investment than TOYOTA. However, Bausch Lomb is 2.63 times more volatile than TOYOTA 2362 25 MAR 31. It trades about 0.09 of its potential returns per unit of risk. TOYOTA 2362 25 MAR 31 is currently generating about 0.05 per unit of risk. If you would invest 1,539 in Bausch Lomb Corp on August 30, 2024 and sell it today you would earn a total of 436.00 from holding Bausch Lomb Corp or generate 28.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 55.56% |
| Values | Daily Returns |
Bausch Lomb Corp vs. TOYOTA 2362 25 MAR 31
Performance |
| Timeline |
| Bausch Lomb Corp |
| TOYOTA 2362 25 |
Bausch Lomb and TOYOTA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bausch Lomb and TOYOTA
The main advantage of trading using opposite Bausch Lomb and TOYOTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, TOYOTA 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 TOYOTA will offset losses from the drop in TOYOTA's long position.| Bausch Lomb vs. ReShape Lifesciences | Bausch Lomb vs. Bone Biologics Corp | Bausch Lomb vs. Tivic Health Systems | Bausch Lomb vs. Nuwellis |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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