Correlation Between Boston Scientific and Centogene
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Centogene 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 Centogene 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 Centogene B V, you can compare the effects of market volatilities on Boston Scientific and Centogene 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 Centogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Centogene.
Diversification Opportunities for Boston Scientific and Centogene
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and Centogene is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Centogene B V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centogene B V 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 Centogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centogene B V has no effect on the direction of Boston Scientific i.e., Boston Scientific and Centogene go up and down completely randomly.
Pair Corralation between Boston Scientific and Centogene
Considering the 90-day investment horizon Boston Scientific is expected to generate 13.53 times less return on investment than Centogene. But when comparing it to its historical volatility, Boston Scientific Corp is 28.89 times less risky than Centogene. It trades about 0.14 of its potential returns per unit of risk. Centogene B V is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Centogene B V on August 30, 2024 and sell it today you would lose (30.00) from holding Centogene B V or give up 76.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. Centogene B V
Performance |
| Timeline |
| Boston Scientific Corp |
| Centogene B V |
Boston Scientific and Centogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Centogene
The main advantage of trading using opposite Boston Scientific and Centogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Centogene 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 Centogene will offset losses from the drop in Centogene's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
| Centogene vs. Fonar | Centogene vs. Exagen Inc | Centogene vs. Sera Prognostics | Centogene vs. Sotera Health Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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