Correlation Between Blackstone Loan and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan 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 Blackstone Loan and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Loan Financing and Boston Scientific Corp, you can compare the effects of market volatilities on Blackstone Loan 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 Blackstone Loan with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Boston Scientific.
Diversification Opportunities for Blackstone Loan and Boston Scientific
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Boston is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing 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 Blackstone Loan 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 Blackstone Loan Financing 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 Blackstone Loan i.e., Blackstone Loan and Boston Scientific go up and down completely randomly.
Pair Corralation between Blackstone Loan and Boston Scientific
Assuming the 90 days trading horizon Blackstone Loan is expected to generate 13.85 times less return on investment than Boston Scientific. But when comparing it to its historical volatility, Blackstone Loan Financing is 1.12 times less risky than Boston Scientific. It trades about 0.01 of its potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,572 in Boston Scientific Corp on October 16, 2024 and sell it today you would earn a total of 4,962 from holding Boston Scientific Corp or generate 108.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Boston Scientific Corp
Performance |
| Timeline |
| Blackstone Loan Financing |
| Boston Scientific Corp |
Blackstone Loan and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Boston Scientific
The main advantage of trading using opposite Blackstone Loan and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan 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.| Blackstone Loan vs. Zurich Insurance Group | Blackstone Loan vs. Pentair PLC | Blackstone Loan vs. CAP LEASE AVIATION | Blackstone Loan vs. Young Cos Brewery |
| Boston Scientific vs. Blackstone Loan Financing | Boston Scientific vs. Tata Steel Limited | Boston Scientific vs. Alliance Data Systems | Boston Scientific vs. Automatic Data Processing |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |