Correlation Between SurModics and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both SurModics 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 SurModics and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SurModics and Boston Scientific Corp, you can compare the effects of market volatilities on SurModics 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 SurModics with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of SurModics and Boston Scientific.
Diversification Opportunities for SurModics and Boston Scientific
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SurModics and Boston is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SurModics 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 SurModics 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 SurModics 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 SurModics i.e., SurModics and Boston Scientific go up and down completely randomly.
Pair Corralation between SurModics and Boston Scientific
Given the investment horizon of 90 days SurModics is expected to generate 1.81 times less return on investment than Boston Scientific. But when comparing it to its historical volatility, SurModics is 1.47 times less risky than Boston Scientific. It trades about 0.18 of its potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,510 in Boston Scientific Corp on August 25, 2024 and sell it today you would earn a total of 490.00 from holding Boston Scientific Corp or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SurModics vs. Boston Scientific Corp
Performance |
| Timeline |
| SurModics |
| Boston Scientific Corp |
SurModics and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SurModics and Boston Scientific
The main advantage of trading using opposite SurModics and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics 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.| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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