Correlation Between Boston Scientific and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Xvivo Perfusion 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 Xvivo Perfusion 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 Xvivo Perfusion AB, you can compare the effects of market volatilities on Boston Scientific and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Xvivo Perfusion.
Diversification Opportunities for Boston Scientific and Xvivo Perfusion
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Xvivo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion AB 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Boston Scientific i.e., Boston Scientific and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Boston Scientific and Xvivo Perfusion
Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.83 times more return on investment than Xvivo Perfusion. However, Boston Scientific Corp is 1.21 times less risky than Xvivo Perfusion. It trades about 0.21 of its potential returns per unit of risk. Xvivo Perfusion AB is currently generating about -0.31 per unit of risk. If you would invest 8,476 in Boston Scientific Corp on August 28, 2024 and sell it today you would earn a total of 449.00 from holding Boston Scientific Corp or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. Xvivo Perfusion AB
Performance |
| Timeline |
| Boston Scientific Corp |
| Xvivo Perfusion AB |
Boston Scientific and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Xvivo Perfusion
The main advantage of trading using opposite Boston Scientific and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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