Correlation Between Repligen and Bausch Lomb

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

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

Diversification Opportunities for Repligen and Bausch Lomb

-0.41

Correlation Coefficient

Repligen  Bausch Lomb

Very good diversification

The 3 months correlation between Repligen and Bausch is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Repligen 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 Repligen 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 Repligen 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 Repligen i.e., Repligen and Bausch Lomb go up and down completely randomly.

Pair Corralation between Repligen and Bausch Lomb

Given the investment horizon of 90 days Repligen is expected to generate 1.1 times more return on investment than Bausch Lomb. However, Repligen is 1.1 times more volatile than Bausch Lomb Corp. It trades about 0.05 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  15,046  in Repligen on December 1, 2024 and sell it today you would earn a total of  880.00  from holding Repligen or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Repligen  vs.  Bausch Lomb Corp

Repligen

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Repligen may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 Repligen and Bausch Lomb

The main advantage of trading using opposite Repligen and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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 Repligen 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.