Correlation Between Elevai Labs, and Bausch Lomb

Can any of the company-specific risk be diversified away by investing in both Elevai Labs, 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 Elevai Labs, and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elevai Labs, Common and Bausch Lomb Corp, you can compare the effects of market volatilities on Elevai Labs, 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 Elevai Labs, with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevai Labs, and Bausch Lomb.

Diversification Opportunities for Elevai Labs, and Bausch Lomb

0.86

Correlation Coefficient

Elevai Labs,  Bausch Lomb

Very poor diversification

The 3 months correlation between Elevai and Bausch is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Elevai Labs, Common 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 Elevai Labs, 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 Elevai Labs, Common 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 Elevai Labs, i.e., Elevai Labs, and Bausch Lomb go up and down completely randomly.

Pair Corralation between Elevai Labs, and Bausch Lomb

Given the investment horizon of 90 days Elevai Labs, Common is expected to under-perform the Bausch Lomb. In addition to that, Elevai Labs, is 6.74 times more volatile than Bausch Lomb Corp. It trades about -0.1 of its total potential returns per unit of risk. Bausch Lomb Corp is currently generating about -0.15 per unit of volatility. 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

Elevai Labs, Common  vs.  Bausch Lomb Corp

Elevai Labs, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elevai Labs, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bausch Lomb Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bausch Lomb Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Elevai Labs, and Bausch Lomb

The main advantage of trading using opposite Elevai Labs, and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevai Labs, 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.

The idea behind Elevai Labs, Common 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.