Correlation Between Boston Scientific and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Stevanato Group 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 Stevanato Group 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 Stevanato Group SpA, you can compare the effects of market volatilities on Boston Scientific and Stevanato Group 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 Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Stevanato Group.
Diversification Opportunities for Boston Scientific and Stevanato Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and Stevanato is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA 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 Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Boston Scientific i.e., Boston Scientific and Stevanato Group go up and down completely randomly.
Pair Corralation between Boston Scientific and Stevanato Group
Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.37 times more return on investment than Stevanato Group. However, Boston Scientific Corp is 2.68 times less risky than Stevanato Group. It trades about 0.12 of its potential returns per unit of risk. Stevanato Group SpA is currently generating about 0.03 per unit of risk. If you would invest 4,713 in Boston Scientific Corp on September 2, 2024 and sell it today you would earn a total of 4,353 from holding Boston Scientific Corp or generate 92.36% 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. Stevanato Group SpA
Performance |
| Timeline |
| Boston Scientific Corp |
| Stevanato Group SpA |
Boston Scientific and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Stevanato Group
The main advantage of trading using opposite Boston Scientific and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Stevanato Group 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 Stevanato Group will offset losses from the drop in Stevanato Group's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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