Correlation Between Bausch Lomb and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both Bausch Lomb and Ekso Bionics 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 Bausch Lomb and Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bausch Lomb Corp and Ekso Bionics Holdings, you can compare the effects of market volatilities on Bausch Lomb and Ekso Bionics 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 Bausch Lomb with a short position of Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bausch Lomb and Ekso Bionics.
Diversification Opportunities for Bausch Lomb and Ekso Bionics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bausch and Ekso is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bausch Lomb Corp and Ekso Bionics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekso Bionics Holdings and Bausch Lomb 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 Bausch Lomb Corp are associated (or correlated) with Ekso Bionics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekso Bionics Holdings has no effect on the direction of Bausch Lomb i.e., Bausch Lomb and Ekso Bionics go up and down completely randomly.
Pair Corralation between Bausch Lomb and Ekso Bionics
Given the investment horizon of 90 days Bausch Lomb Corp is expected to generate 0.29 times more return on investment than Ekso Bionics. However, Bausch Lomb Corp is 3.42 times less risky than Ekso Bionics. It trades about -0.15 of its potential returns per unit of risk. Ekso Bionics Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,779 in Bausch Lomb Corp on December 28, 2024 and sell it today you would lose (279.00) from holding Bausch Lomb Corp or give up 15.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bausch Lomb Corp vs. Ekso Bionics Holdings
Performance |
Timeline |
Bausch Lomb Corp |
Ekso Bionics Holdings |
Bausch Lomb and Ekso Bionics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bausch Lomb and Ekso Bionics
The main advantage of trading using opposite Bausch Lomb and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bausch Lomb position performs unexpectedly, Ekso Bionics 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 Ekso Bionics will offset losses from the drop in Ekso Bionics' long position.Bausch Lomb vs. The Cooper Companies, | Bausch Lomb vs. ICU Medical | Bausch Lomb vs. Hologic | Bausch Lomb vs. Becton Dickinson and |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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