Correlation Between TransMedics and Bausch Lomb
Can any of the company-specific risk be diversified away by investing in both TransMedics 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 TransMedics and Bausch Lomb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransMedics Group and Bausch Lomb Corp, you can compare the effects of market volatilities on TransMedics 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 TransMedics with a short position of Bausch Lomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransMedics and Bausch Lomb.
Diversification Opportunities for TransMedics and Bausch Lomb
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TransMedics and Bausch is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TransMedics Group 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 TransMedics 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 TransMedics Group 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 TransMedics i.e., TransMedics and Bausch Lomb go up and down completely randomly.
Pair Corralation between TransMedics and Bausch Lomb
Given the investment horizon of 90 days TransMedics Group is expected to generate 1.75 times more return on investment than Bausch Lomb. However, TransMedics is 1.75 times more volatile than Bausch Lomb Corp. It trades about 0.07 of its potential returns per unit of risk. Bausch Lomb Corp is currently generating about 0.11 per unit of risk. If you would invest 11,518 in TransMedics Group on October 7, 2025 and sell it today you would earn a total of 1,323 from holding TransMedics Group or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
TransMedics Group vs. Bausch Lomb Corp
Performance |
| Timeline |
| TransMedics Group |
| Bausch Lomb Corp |
TransMedics and Bausch Lomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransMedics and Bausch Lomb
The main advantage of trading using opposite TransMedics and Bausch Lomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransMedics 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.| TransMedics vs. Option Care Health | TransMedics vs. Glaukos Corp | TransMedics vs. Oscar Health | TransMedics vs. Immunovant |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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