Correlation Between Aethlon Medical and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical 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 Aethlon Medical and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Boston Scientific Corp, you can compare the effects of market volatilities on Aethlon Medical 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 Aethlon Medical with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Boston Scientific.
Diversification Opportunities for Aethlon Medical and Boston Scientific
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aethlon and Boston is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical 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 Aethlon Medical 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 Aethlon Medical 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 Aethlon Medical i.e., Aethlon Medical and Boston Scientific go up and down completely randomly.
Pair Corralation between Aethlon Medical and Boston Scientific
Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the Boston Scientific. In addition to that, Aethlon Medical is 6.64 times more volatile than Boston Scientific Corp. It trades about 0.0 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.12 per unit of volatility. If you would invest 4,627 in Boston Scientific Corp on September 20, 2024 and sell it today you would earn a total of 4,416 from holding Boston Scientific Corp or generate 95.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aethlon Medical vs. Boston Scientific Corp
Performance |
| Timeline |
| Aethlon Medical |
| Boston Scientific Corp |
Aethlon Medical and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Boston Scientific
The main advantage of trading using opposite Aethlon Medical and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical 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.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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