Correlation Between Boston Scientific and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Siemens Healthineers 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 Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Scientific and Siemens Healthineers AG, you can compare the effects of market volatilities on Boston Scientific and Siemens Healthineers 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 Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Siemens Healthineers.
Diversification Opportunities for Boston Scientific and Siemens Healthineers
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boston and Siemens is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers 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 are associated (or correlated) with Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of Boston Scientific i.e., Boston Scientific and Siemens Healthineers go up and down completely randomly.
Pair Corralation between Boston Scientific and Siemens Healthineers
Assuming the 90 days horizon Boston Scientific is expected to generate 2.39 times less return on investment than Siemens Healthineers. In addition to that, Boston Scientific is 1.25 times more volatile than Siemens Healthineers AG. It trades about 0.05 of its total potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.16 per unit of volatility. If you would invest 5,060 in Siemens Healthineers AG on September 25, 2024 and sell it today you would earn a total of 150.00 from holding Siemens Healthineers AG or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Boston Scientific vs. Siemens Healthineers AG
Performance |
| Timeline |
| Boston Scientific |
| Siemens Healthineers |
Boston Scientific and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Siemens Healthineers
The main advantage of trading using opposite Boston Scientific and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. Stryker | Boston Scientific vs. Siemens Healthineers AG |
| Siemens Healthineers vs. Abbott Laboratories | Siemens Healthineers vs. Medtronic PLC | Siemens Healthineers vs. Stryker | Siemens Healthineers vs. Boston Scientific |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |