Correlation Between BRISTOL and Bausch Lomb
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By analyzing existing cross correlation between BRISTOL MYERS SQUIBB CO and Bausch Lomb Corp, you can compare the effects of market volatilities on BRISTOL 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 BRISTOL with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRISTOL and Bausch Lomb.
Diversification Opportunities for BRISTOL and Bausch Lomb
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BRISTOL and Bausch is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BRISTOL MYERS SQUIBB CO 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 BRISTOL 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 BRISTOL MYERS SQUIBB CO 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 BRISTOL i.e., BRISTOL and Bausch Lomb go up and down completely randomly.
Pair Corralation between BRISTOL and Bausch Lomb
Assuming the 90 days trading horizon BRISTOL is expected to generate 16.7 times less return on investment than Bausch Lomb. But when comparing it to its historical volatility, BRISTOL MYERS SQUIBB CO is 4.91 times less risky than Bausch Lomb. It trades about 0.01 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,604 in Bausch Lomb Corp on September 3, 2024 and sell it today you would earn a total of 378.00 from holding Bausch Lomb Corp or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
BRISTOL MYERS SQUIBB CO vs. Bausch Lomb Corp
Performance |
| Timeline |
| BRISTOL MYERS SQUIBB |
| Bausch Lomb Corp |
BRISTOL and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRISTOL and Bausch Lomb
The main advantage of trading using opposite BRISTOL and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRISTOL 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.| BRISTOL vs. The Travelers Companies | BRISTOL vs. GE Aerospace | BRISTOL vs. Walmart | BRISTOL vs. Pfizer 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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