Correlation Between Hologic and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Hologic 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 Hologic and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hologic and Bausch Lomb Corp, you can compare the effects of market volatilities on Hologic 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 Hologic with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hologic and Bausch Lomb.
Diversification Opportunities for Hologic and Bausch Lomb
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hologic and Bausch is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hologic 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 Hologic 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 Hologic 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 Hologic i.e., Hologic and Bausch Lomb go up and down completely randomly.
Pair Corralation between Hologic and Bausch Lomb
Given the investment horizon of 90 days Hologic is expected to generate 0.99 times more return on investment than Bausch Lomb. However, Hologic is 1.01 times less risky than Bausch Lomb. It trades about -0.02 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about -0.09 per unit of risk. If you would invest 8,046 in Hologic on August 27, 2024 and sell it today you would lose (73.00) from holding Hologic or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hologic vs. Bausch Lomb Corp
Performance |
| Timeline |
| Hologic |
| Bausch Lomb Corp |
Hologic and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hologic and Bausch Lomb
The main advantage of trading using opposite Hologic and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hologic 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.| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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