Correlation Between Tower One and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Tower One 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 Tower One and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower One Wireless and Bausch Lomb Corp, you can compare the effects of market volatilities on Tower One 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 Tower One with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower One and Bausch Lomb.
Diversification Opportunities for Tower One and Bausch Lomb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tower and Bausch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower One Wireless 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 Tower One 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 Tower One Wireless 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 Tower One i.e., Tower One and Bausch Lomb go up and down completely randomly.
Pair Corralation between Tower One and Bausch Lomb
Assuming the 90 days horizon Tower One Wireless is expected to generate 20.52 times more return on investment than Bausch Lomb. However, Tower One is 20.52 times more volatile than Bausch Lomb Corp. It trades about 0.04 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about 0.03 per unit of risk. If you would invest 4.89 in Tower One Wireless on August 25, 2024 and sell it today you would lose (4.88) from holding Tower One Wireless or give up 99.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower One Wireless vs. Bausch Lomb Corp
Performance |
| Timeline |
| Tower One Wireless |
| Bausch Lomb Corp |
Tower One and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower One and Bausch Lomb
The main advantage of trading using opposite Tower One and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower One 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.| Tower One vs. Access Power Co | Tower One vs. Nw Tech Capital | Tower One vs. Radcom | Tower One vs. FingerMotion |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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