Correlation Between Boston Scientific and Fuse Medical
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Fuse 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 Fuse 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 Fuse Medical, you can compare the effects of market volatilities on Boston Scientific and Fuse 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 Fuse Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Fuse Medical.
Diversification Opportunities for Boston Scientific and Fuse Medical
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boston and Fuse is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Fuse Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuse 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 Fuse Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuse Medical has no effect on the direction of Boston Scientific i.e., Boston Scientific and Fuse Medical go up and down completely randomly.
Pair Corralation between Boston Scientific and Fuse Medical
Considering the 90-day investment horizon Boston Scientific is expected to generate 367.73 times less return on investment than Fuse Medical. But when comparing it to its historical volatility, Boston Scientific Corp is 45.9 times less risky than Fuse Medical. It trades about 0.02 of its potential returns per unit of risk. Fuse Medical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Fuse Medical on September 21, 2024 and sell it today you would earn a total of 7.00 from holding Fuse Medical or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. Fuse Medical
Performance |
| Timeline |
| Boston Scientific Corp |
| Fuse Medical |
Boston Scientific and Fuse Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Fuse Medical
The main advantage of trading using opposite Boston Scientific and Fuse Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Fuse 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 Fuse Medical will offset losses from the drop in Fuse Medical's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
| Fuse Medical vs. Vivos Therapeutics | Fuse Medical vs. Cerus | Fuse Medical vs. Boston Scientific Corp | Fuse Medical vs. Novacyt SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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