Correlation Between Boston Scientific and Nano X
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Nano X 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 Nano X 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 Nano X Imaging, you can compare the effects of market volatilities on Boston Scientific and Nano X 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 Nano X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Nano X.
Diversification Opportunities for Boston Scientific and Nano X
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and Nano is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Nano X Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano X Imaging 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 Nano X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano X Imaging has no effect on the direction of Boston Scientific i.e., Boston Scientific and Nano X go up and down completely randomly.
Pair Corralation between Boston Scientific and Nano X
Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.21 times more return on investment than Nano X. However, Boston Scientific Corp is 4.81 times less risky than Nano X. It trades about 0.14 of its potential returns per unit of risk. Nano X Imaging is currently generating about -0.02 per unit of risk. If you would invest 5,107 in Boston Scientific Corp on August 31, 2024 and sell it today you would earn a total of 3,959 from holding Boston Scientific Corp or generate 77.52% 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. Nano X Imaging
Performance |
| Timeline |
| Boston Scientific Corp |
| Nano X Imaging |
Boston Scientific and Nano X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Nano X
The main advantage of trading using opposite Boston Scientific and Nano X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Nano X 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 Nano X will offset losses from the drop in Nano X's long position.| Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. Edwards Lifesciences Corp | Boston Scientific vs. ZimVie Inc |
| Nano X vs. Abbott Laboratories | Nano X vs. Medtronic PLC | Nano X vs. Edwards Lifesciences Corp | Nano X vs. ZimVie Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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