Correlation Between Mulberry Group and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Mulberry Group 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 Mulberry Group and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and Boston Scientific Corp, you can compare the effects of market volatilities on Mulberry Group 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 Mulberry Group with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and Boston Scientific.
Diversification Opportunities for Mulberry Group and Boston Scientific
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mulberry and Boston is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC 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 Mulberry Group 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 Mulberry Group PLC 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 Mulberry Group i.e., Mulberry Group and Boston Scientific go up and down completely randomly.
Pair Corralation between Mulberry Group and Boston Scientific
Assuming the 90 days trading horizon Mulberry Group PLC is expected to under-perform the Boston Scientific. In addition to that, Mulberry Group is 2.88 times more volatile than Boston Scientific Corp. It trades about -0.03 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.13 per unit of volatility. If you would invest 4,605 in Boston Scientific Corp on October 13, 2024 and sell it today you would earn a total of 4,921 from holding Boston Scientific Corp or generate 106.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.01% |
| Values | Daily Returns |
Mulberry Group PLC vs. Boston Scientific Corp
Performance |
| Timeline |
| Mulberry Group PLC |
| Boston Scientific Corp |
Mulberry Group and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and Boston Scientific
The main advantage of trading using opposite Mulberry Group and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group 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.| Mulberry Group vs. Jupiter Fund Management | Mulberry Group vs. Coeur Mining | Mulberry Group vs. Jacquet Metal Service | Mulberry Group vs. Rheinmetall AG |
| Boston Scientific vs. Wheaton Precious Metals | Boston Scientific vs. Zegona Communications Plc | Boston Scientific vs. Lundin Mining Corp | Boston Scientific vs. Metals Exploration Plc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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