Correlation Between Boston Scientific and BlackRock Frontiers
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and BlackRock Frontiers 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 Boston Scientific and BlackRock Frontiers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Scientific Corp and BlackRock Frontiers Investment, you can compare the effects of market volatilities on Boston Scientific and BlackRock Frontiers 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 Boston Scientific with a short position of BlackRock Frontiers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and BlackRock Frontiers.
Diversification Opportunities for Boston Scientific and BlackRock Frontiers
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and BlackRock is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and BlackRock Frontiers Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Frontiers and Boston Scientific 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 Boston Scientific Corp are associated (or correlated) with BlackRock Frontiers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Frontiers has no effect on the direction of Boston Scientific i.e., Boston Scientific and BlackRock Frontiers go up and down completely randomly.
Pair Corralation between Boston Scientific and BlackRock Frontiers
Assuming the 90 days trading horizon Boston Scientific Corp is expected to generate 0.95 times more return on investment than BlackRock Frontiers. However, Boston Scientific Corp is 1.05 times less risky than BlackRock Frontiers. It trades about 0.44 of its potential returns per unit of risk. BlackRock Frontiers Investment is currently generating about -0.05 per unit of risk. If you would invest 9,690 in Boston Scientific Corp on November 9, 2024 and sell it today you would earn a total of 842.00 from holding Boston Scientific Corp or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Boston Scientific Corp vs. BlackRock Frontiers Investment
Performance |
| Timeline |
| Boston Scientific Corp |
| BlackRock Frontiers |
Boston Scientific and BlackRock Frontiers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and BlackRock Frontiers
The main advantage of trading using opposite Boston Scientific and BlackRock Frontiers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, BlackRock Frontiers 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 BlackRock Frontiers will offset losses from the drop in BlackRock Frontiers' long position.| Boston Scientific vs. Geely Automobile Holdings | Boston Scientific vs. Litigation Capital Management | Boston Scientific vs. Summit Materials Cl | Boston Scientific vs. Aeorema Communications Plc |
| BlackRock Frontiers vs. Uniper SE | BlackRock Frontiers vs. Mulberry Group PLC | BlackRock Frontiers vs. London Security Plc | BlackRock Frontiers vs. Triad Group PLC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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