Correlation Between Crispr Therapeutics and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Crispr Therapeutics 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 Crispr Therapeutics and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crispr Therapeutics AG and Bausch Lomb Corp, you can compare the effects of market volatilities on Crispr Therapeutics 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 Crispr Therapeutics with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crispr Therapeutics and Bausch Lomb.
Diversification Opportunities for Crispr Therapeutics and Bausch Lomb
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crispr and Bausch is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Crispr Therapeutics AG 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 Crispr Therapeutics 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 Crispr Therapeutics AG 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 Crispr Therapeutics i.e., Crispr Therapeutics and Bausch Lomb go up and down completely randomly.
Pair Corralation between Crispr Therapeutics and Bausch Lomb
Given the investment horizon of 90 days Crispr Therapeutics AG is expected to generate 1.82 times more return on investment than Bausch Lomb. However, Crispr Therapeutics is 1.82 times more volatile than Bausch Lomb Corp. It trades about 0.01 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about -0.01 per unit of risk. If you would invest 5,432 in Crispr Therapeutics AG on August 22, 2025 and sell it today you would lose (85.00) from holding Crispr Therapeutics AG or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crispr Therapeutics AG vs. Bausch Lomb Corp
Performance |
| Timeline |
| Crispr Therapeutics |
| Bausch Lomb Corp |
Crispr Therapeutics and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crispr Therapeutics and Bausch Lomb
The main advantage of trading using opposite Crispr Therapeutics and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crispr Therapeutics 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.| Crispr Therapeutics vs. Vaxcyte | Crispr Therapeutics vs. Arrowhead Pharmaceuticals | Crispr Therapeutics vs. Krystal Biotech | Crispr Therapeutics vs. PTC Therapeutics |
| Bausch Lomb vs. Teleflex Incorporated | Bausch Lomb vs. Merit Medical Systems | Bausch Lomb vs. Vaxcyte | Bausch Lomb vs. Crispr Therapeutics AG |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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