Correlation Between Paragon 28 and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Paragon 28 and Boston Scientific 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 Paragon 28 and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paragon 28 and Boston Scientific Corp, you can compare the effects of market volatilities on Paragon 28 and Boston Scientific 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 Paragon 28 with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paragon 28 and Boston Scientific.
Diversification Opportunities for Paragon 28 and Boston Scientific
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Paragon and Boston is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Paragon 28 and Boston Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Scientific Corp and Paragon 28 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 Paragon 28 are associated (or correlated) with Boston Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Scientific Corp has no effect on the direction of Paragon 28 i.e., Paragon 28 and Boston Scientific go up and down completely randomly.
Pair Corralation between Paragon 28 and Boston Scientific
Considering the 90-day investment horizon Paragon 28 is expected to under-perform the Boston Scientific. In addition to that, Paragon 28 is 3.67 times more volatile than Boston Scientific Corp. It trades about -0.01 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.12 per unit of volatility. If you would invest 4,720 in Boston Scientific Corp on September 3, 2024 and sell it today you would earn a total of 4,323 from holding Boston Scientific Corp or generate 91.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paragon 28 vs. Boston Scientific Corp
Performance |
| Timeline |
| Paragon 28 |
| Boston Scientific Corp |
Paragon 28 and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paragon 28 and Boston Scientific
The main advantage of trading using opposite Paragon 28 and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paragon 28 position performs unexpectedly, Boston Scientific 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 Boston Scientific will offset losses from the drop in Boston Scientific's long position.| Paragon 28 vs. Tandem Diabetes Care | Paragon 28 vs. Inspire Medical Systems | Paragon 28 vs. Penumbra | Paragon 28 vs. Insulet |
| Boston Scientific vs. Tandem Diabetes Care | Boston Scientific vs. Inspire Medical Systems | Boston Scientific vs. Penumbra | Boston Scientific vs. Insulet |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |