Correlation Between Teleflex Incorporated and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated 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 Teleflex Incorporated and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Bausch Lomb Corp, you can compare the effects of market volatilities on Teleflex Incorporated 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 Teleflex Incorporated with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Bausch Lomb.
Diversification Opportunities for Teleflex Incorporated and Bausch Lomb
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and Bausch is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated 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 Teleflex Incorporated 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 Teleflex Incorporated 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 Teleflex Incorporated i.e., Teleflex Incorporated and Bausch Lomb go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Bausch Lomb
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Bausch Lomb. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.34 times less risky than Bausch Lomb. The stock trades about -0.02 of its potential returns per unit of risk. The Bausch Lomb Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,524 in Bausch Lomb Corp on August 25, 2024 and sell it today you would earn a total of 433.00 from holding Bausch Lomb Corp or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Bausch Lomb Corp
Performance |
| Timeline |
| Teleflex Incorporated |
| Bausch Lomb Corp |
Teleflex Incorporated and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Bausch Lomb
The main advantage of trading using opposite Teleflex Incorporated and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated 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.| Teleflex Incorporated vs. Heartbeam | Teleflex Incorporated vs. EUDA Health Holdings | Teleflex Incorporated vs. Nutex Health | Teleflex Incorporated vs. Healthcare Triangle |
| Bausch Lomb vs. Heartbeam | Bausch Lomb vs. EUDA Health Holdings | Bausch Lomb vs. Nutex Health | Bausch Lomb vs. Healthcare Triangle |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |