Correlation Between Meta Platforms and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both Meta Platforms 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 Meta Platforms and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms CDR and Bausch Lomb Corp, you can compare the effects of market volatilities on Meta Platforms 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 Meta Platforms with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Bausch Lomb.
Diversification Opportunities for Meta Platforms and Bausch Lomb
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meta and Bausch is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms CDR 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 Meta Platforms 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 Meta Platforms CDR 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 Meta Platforms i.e., Meta Platforms and Bausch Lomb go up and down completely randomly.
Pair Corralation between Meta Platforms and Bausch Lomb
Assuming the 90 days trading horizon Meta Platforms CDR is expected to under-perform the Bausch Lomb. But the stock apears to be less risky and, when comparing its historical volatility, Meta Platforms CDR is 1.05 times less risky than Bausch Lomb. The stock trades about -0.18 of its potential returns per unit of risk. The Bausch Lomb Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,949 in Bausch Lomb Corp on August 14, 2025 and sell it today you would earn a total of 355.00 from holding Bausch Lomb Corp or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Meta Platforms CDR vs. Bausch Lomb Corp
Performance |
| Timeline |
| Meta Platforms CDR |
| Bausch Lomb Corp |
Meta Platforms and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and Bausch Lomb
The main advantage of trading using opposite Meta Platforms and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms 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.| Meta Platforms vs. Cogeco Communications | Meta Platforms vs. Homerun Resources | Meta Platforms vs. American CuMo Mining | Meta Platforms vs. Mako Mining Corp |
| Bausch Lomb vs. Ocumetics Technology Corp | Bausch Lomb vs. Bausch Health Companies | Bausch Lomb vs. ZEN Graphene Solutions | Bausch Lomb vs. Curaleaf Holdings |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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