Correlation Between Neuropace and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Neuropace 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 Neuropace and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuropace and Boston Scientific Corp, you can compare the effects of market volatilities on Neuropace 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 Neuropace with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuropace and Boston Scientific.
Diversification Opportunities for Neuropace and Boston Scientific
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Neuropace and Boston is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Neuropace 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 Neuropace 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 Neuropace 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 Neuropace i.e., Neuropace and Boston Scientific go up and down completely randomly.
Pair Corralation between Neuropace and Boston Scientific
Given the investment horizon of 90 days Neuropace is expected to generate 6.49 times more return on investment than Boston Scientific. However, Neuropace is 6.49 times more volatile than Boston Scientific Corp. It trades about 0.34 of its potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.2 per unit of risk. If you would invest 638.00 in Neuropace on August 28, 2024 and sell it today you would earn a total of 428.00 from holding Neuropace or generate 67.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuropace vs. Boston Scientific Corp
Performance |
| Timeline |
| Neuropace |
| Boston Scientific Corp |
Neuropace and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuropace and Boston Scientific
The main advantage of trading using opposite Neuropace and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuropace 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.| Neuropace vs. Electromed | Neuropace vs. Orthopediatrics Corp | Neuropace vs. SurModics | Neuropace vs. Paragon 28 |
| Boston Scientific vs. Nutex Health | Boston Scientific vs. Mangoceuticals, Common Stock | Boston Scientific vs. Aclarion |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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