Correlation Between Cooper Companies and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Cooper Companies 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 Cooper Companies and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cooper Companies and Bausch Lomb Corp, you can compare the effects of market volatilities on Cooper Companies 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 Cooper Companies with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies and Bausch Lomb.
Diversification Opportunities for Cooper Companies and Bausch Lomb
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cooper and Bausch is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies 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 Cooper Companies 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 The Cooper Companies 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 Cooper Companies i.e., Cooper Companies and Bausch Lomb go up and down completely randomly.
Pair Corralation between Cooper Companies and Bausch Lomb
Considering the 90-day investment horizon The Cooper Companies is expected to generate 0.56 times more return on investment than Bausch Lomb. However, The Cooper Companies is 1.77 times less risky than Bausch Lomb. It trades about 0.25 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about 0.12 per unit of risk. If you would invest 9,053 in The Cooper Companies on February 16, 2024 and sell it today you would earn a total of 737.00 from holding The Cooper Companies or generate 8.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
The Cooper Companies vs. Bausch Lomb Corp
Performance |
Timeline |
Cooper Companies |
Bausch Lomb Corp |
Cooper Companies and Bausch Lomb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cooper Companies and Bausch Lomb
The main advantage of trading using opposite Cooper Companies and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies 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.Cooper Companies vs. West Pharmaceutical Services | Cooper Companies vs. Hologic | Cooper Companies vs. ICU Medical | Cooper Companies vs. Haemonetics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
CEOs Directory Screen CEOs from public companies around the world |