Correlation Between Boston Scientific and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Aethlon 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 Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Scientific Corp and Aethlon Medical, you can compare the effects of market volatilities on Boston Scientific and Aethlon 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 Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Aethlon Medical.
Diversification Opportunities for Boston Scientific and Aethlon Medical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and Aethlon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical 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 Corp are associated (or correlated) with Aethlon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aethlon Medical has no effect on the direction of Boston Scientific i.e., Boston Scientific and Aethlon Medical go up and down completely randomly.
Pair Corralation between Boston Scientific and Aethlon Medical
Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.15 times more return on investment than Aethlon Medical. However, Boston Scientific Corp is 6.64 times less risky than Aethlon Medical. It trades about 0.12 of its potential returns per unit of risk. Aethlon Medical is currently generating about 0.0 per unit of risk. 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 |
Boston Scientific Corp vs. Aethlon Medical
Performance |
| Timeline |
| Boston Scientific Corp |
| Aethlon Medical |
Boston Scientific and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Aethlon Medical
The main advantage of trading using opposite Boston Scientific and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Aethlon 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 Aethlon Medical will offset losses from the drop in Aethlon Medical's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
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.
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