Correlation Between Boston Scientific and EUDA Health
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and EUDA Health 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 EUDA Health 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 EUDA Health Holdings, you can compare the effects of market volatilities on Boston Scientific and EUDA Health 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 EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and EUDA Health.
Diversification Opportunities for Boston Scientific and EUDA Health
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boston and EUDA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and EUDA Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUDA Health Holdings 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 EUDA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUDA Health Holdings has no effect on the direction of Boston Scientific i.e., Boston Scientific and EUDA Health go up and down completely randomly.
Pair Corralation between Boston Scientific and EUDA Health
Considering the 90-day investment horizon Boston Scientific is expected to generate 3.32 times less return on investment than EUDA Health. But when comparing it to its historical volatility, Boston Scientific Corp is 5.75 times less risky than EUDA Health. It trades about 0.14 of its potential returns per unit of risk. EUDA Health Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 148.00 in EUDA Health Holdings on August 31, 2024 and sell it today you would earn a total of 295.00 from holding EUDA Health Holdings or generate 199.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. EUDA Health Holdings
Performance |
| Timeline |
| Boston Scientific Corp |
| EUDA Health Holdings |
Boston Scientific and EUDA Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and EUDA Health
The main advantage of trading using opposite Boston Scientific and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, EUDA Health 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 EUDA Health will offset losses from the drop in EUDA Health's long position.| Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. Edwards Lifesciences Corp | Boston Scientific vs. ZimVie Inc |
| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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