Correlation Between 437076BZ4 and Bausch Lomb

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both 437076BZ4 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 437076BZ4 and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOME DEPOT INC and Bausch Lomb Corp, you can compare the effects of market volatilities on 437076BZ4 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 437076BZ4 with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of 437076BZ4 and Bausch Lomb.

Diversification Opportunities for 437076BZ4 and Bausch Lomb

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between 437076BZ4 and Bausch is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding HOME DEPOT INC 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 437076BZ4 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 HOME DEPOT INC 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 437076BZ4 i.e., 437076BZ4 and Bausch Lomb go up and down completely randomly.

Pair Corralation between 437076BZ4 and Bausch Lomb

Assuming the 90 days trading horizon HOME DEPOT INC is expected to generate 0.64 times more return on investment than Bausch Lomb. However, HOME DEPOT INC is 1.56 times less risky than Bausch Lomb. It trades about 0.1 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about -0.13 per unit of risk. If you would invest  6,995  in HOME DEPOT INC on August 30, 2024 and sell it today you would earn a total of  121.00  from holding HOME DEPOT INC or generate 1.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy81.82%
ValuesDaily Returns

HOME DEPOT INC  vs.  Bausch Lomb Corp

 Performance 
       Timeline  
HOME DEPOT INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HOME DEPOT INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 437076BZ4 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Bausch Lomb Corp 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Bausch Lomb Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Bausch Lomb displayed solid returns over the last few months and may actually be approaching a breakup point.

437076BZ4 and Bausch Lomb Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 437076BZ4 and Bausch Lomb

The main advantage of trading using opposite 437076BZ4 and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 437076BZ4 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.
437076BZ4 vs. Beyond Meat
437076BZ4 vs. National Beverage Corp
437076BZ4 vs. Kraft Heinz Co
437076BZ4 vs. FitLife Brands, Common
The idea behind HOME DEPOT INC and Bausch Lomb Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Bausch Lomb vs. ReShape Lifesciences
Bausch Lomb vs. Bone Biologics Corp
Bausch Lomb vs. Tivic Health Systems
Bausch Lomb vs. Nuwellis
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY