Correlation Between Seraphim Space and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Seraphim Space 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 Seraphim Space and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seraphim Space Investment and Boston Scientific Corp, you can compare the effects of market volatilities on Seraphim Space 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 Seraphim Space with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seraphim Space and Boston Scientific.
Diversification Opportunities for Seraphim Space and Boston Scientific
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Seraphim and Boston is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment 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 Seraphim Space 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 Seraphim Space Investment 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 Seraphim Space i.e., Seraphim Space and Boston Scientific go up and down completely randomly.
Pair Corralation between Seraphim Space and Boston Scientific
Assuming the 90 days trading horizon Seraphim Space is expected to generate 1.2 times less return on investment than Boston Scientific. In addition to that, Seraphim Space is 3.79 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 4,786 in Boston Scientific Corp on October 28, 2024 and sell it today you would earn a total of 5,376 from holding Boston Scientific Corp or generate 112.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Seraphim Space Investment vs. Boston Scientific Corp
Performance |
| Timeline |
| Seraphim Space Investment |
| Boston Scientific Corp |
Seraphim Space and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seraphim Space and Boston Scientific
The main advantage of trading using opposite Seraphim Space and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seraphim Space 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.| Seraphim Space vs. SupplyMe Capital PLC | Seraphim Space vs. Premier African Minerals | Seraphim Space vs. SANTANDER UK 8 | Seraphim Space vs. Tower Resources plc |
| Boston Scientific vs. Ecclesiastical Insurance Office | Boston Scientific vs. Roebuck Food Group | Boston Scientific vs. DFS Furniture PLC | Boston Scientific vs. Edita Food Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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