Correlation Between Uniper SE and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Boston Scientific 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 Uniper SE and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Boston Scientific Corp, you can compare the effects of market volatilities on Uniper SE and Boston Scientific 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 Uniper SE with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Boston Scientific.
Diversification Opportunities for Uniper SE and Boston Scientific
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uniper and Boston is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Boston Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Scientific Corp and Uniper SE 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 Uniper SE are associated (or correlated) with Boston Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Scientific Corp has no effect on the direction of Uniper SE i.e., Uniper SE and Boston Scientific go up and down completely randomly.
Pair Corralation between Uniper SE and Boston Scientific
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Boston Scientific. In addition to that, Uniper SE is 2.92 times more volatile than Boston Scientific Corp. It trades about -0.12 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.02 per unit of volatility. If you would invest 8,938 in Boston Scientific Corp on September 25, 2024 and sell it today you would earn a total of 28.00 from holding Boston Scientific Corp or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniper SE vs. Boston Scientific Corp
Performance |
| Timeline |
| Uniper SE |
| Boston Scientific Corp |
Uniper SE and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Boston Scientific
The main advantage of trading using opposite Uniper SE and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Boston Scientific 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 Boston Scientific will offset losses from the drop in Boston Scientific's long position.| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
| Boston Scientific vs. Uniper SE | Boston Scientific vs. Mulberry Group PLC | Boston Scientific vs. London Security Plc | Boston Scientific 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 CEOs Directory module to screen CEOs from public companies around the world.
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