Correlation Between Adriatic Metals and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Adriatic Metals 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 Adriatic Metals and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adriatic Metals and Boston Scientific Corp, you can compare the effects of market volatilities on Adriatic Metals 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 Adriatic Metals with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adriatic Metals and Boston Scientific.
Diversification Opportunities for Adriatic Metals and Boston Scientific
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adriatic and Boston is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Adriatic Metals 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 Adriatic Metals 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 Adriatic Metals 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 Adriatic Metals i.e., Adriatic Metals and Boston Scientific go up and down completely randomly.
Pair Corralation between Adriatic Metals and Boston Scientific
Assuming the 90 days trading horizon Adriatic Metals is expected to generate 1.26 times less return on investment than Boston Scientific. In addition to that, Adriatic Metals is 1.91 times more volatile than Boston Scientific Corp. It trades about 0.2 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.48 per unit of volatility. If you would invest 9,233 in Boston Scientific Corp on November 8, 2024 and sell it today you would earn a total of 1,315 from holding Boston Scientific Corp or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Adriatic Metals vs. Boston Scientific Corp
Performance |
| Timeline |
| Adriatic Metals |
| Boston Scientific Corp |
Adriatic Metals and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adriatic Metals and Boston Scientific
The main advantage of trading using opposite Adriatic Metals and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adriatic Metals 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.| Adriatic Metals vs. One Media iP | Adriatic Metals vs. Costco Wholesale Corp | Adriatic Metals vs. G5 Entertainment AB | Adriatic Metals vs. Catena Media PLC |
| Boston Scientific vs. Diversified Energy | Boston Scientific vs. Eastinco Mining Exploration | Boston Scientific vs. Lowland Investment Co | Boston Scientific vs. Seraphim Space Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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