Correlation Between MMA Offshore and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both MMA Offshore 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 MMA Offshore and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMA Offshore Limited and Bausch Lomb Corp, you can compare the effects of market volatilities on MMA Offshore 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 MMA Offshore with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMA Offshore and Bausch Lomb.
Diversification Opportunities for MMA Offshore and Bausch Lomb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MMA and Bausch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MMA Offshore Limited 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 MMA Offshore 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 MMA Offshore Limited 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 MMA Offshore i.e., MMA Offshore and Bausch Lomb go up and down completely randomly.
Pair Corralation between MMA Offshore and Bausch Lomb
If you would invest 150.00 in MMA Offshore Limited on September 5, 2024 and sell it today you would earn a total of 0.00 from holding MMA Offshore Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
MMA Offshore Limited vs. Bausch Lomb Corp
Performance |
| Timeline |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bausch Lomb Corp |
MMA Offshore and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMA Offshore and Bausch Lomb
The main advantage of trading using opposite MMA Offshore and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMA Offshore 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.| MMA Offshore vs. Bausch Lomb Corp | MMA Offshore vs. Eastern Co | MMA Offshore vs. HNI Corp | MMA Offshore vs. Nike Inc |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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