Correlation Between Boston Scientific and GN Store
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and GN Store 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 GN Store 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 GN Store Nord, you can compare the effects of market volatilities on Boston Scientific and GN Store 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 GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and GN Store.
Diversification Opportunities for Boston Scientific and GN Store
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and GGNDF is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Boston Scientific i.e., Boston Scientific and GN Store go up and down completely randomly.
Pair Corralation between Boston Scientific and GN Store
Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.41 times more return on investment than GN Store. However, Boston Scientific Corp is 2.44 times less risky than GN Store. It trades about 0.14 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.15 per unit of risk. If you would invest 7,557 in Boston Scientific Corp on August 29, 2024 and sell it today you would earn a total of 1,518 from holding Boston Scientific Corp or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. GN Store Nord
Performance |
| Timeline |
| Boston Scientific Corp |
| GN Store Nord |
Boston Scientific and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and GN Store
The main advantage of trading using opposite Boston Scientific and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
| GN Store vs. Brainsway | GN Store vs. Bluejay Diagnostics | GN Store vs. Venus Concept | GN Store vs. Icecure Medical |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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