Correlation Between Boston Scientific and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and XTANT MEDICAL 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 XTANT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Scientific and XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Boston Scientific and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and XTANT MEDICAL.
Diversification Opportunities for Boston Scientific and XTANT MEDICAL
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and XTANT is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Boston Scientific i.e., Boston Scientific and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Boston Scientific and XTANT MEDICAL
Assuming the 90 days horizon Boston Scientific is expected to generate 0.29 times more return on investment than XTANT MEDICAL. However, Boston Scientific is 3.47 times less risky than XTANT MEDICAL. It trades about 0.1 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.0 per unit of risk. If you would invest 4,384 in Boston Scientific on September 24, 2024 and sell it today you would earn a total of 4,116 from holding Boston Scientific or generate 93.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Boston Scientific |
| XTANT MEDICAL HLDGS |
Boston Scientific and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and XTANT MEDICAL
The main advantage of trading using opposite Boston Scientific and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. Stryker | Boston Scientific vs. Siemens Healthineers AG |
| XTANT MEDICAL vs. SHIN ETSU CHEMICAL | XTANT MEDICAL vs. SEKISUI CHEMICAL | XTANT MEDICAL vs. Soken Chemical Engineering | XTANT MEDICAL vs. Silicon Motion Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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