Correlation Between XTANT MEDICAL and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL 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 XTANT MEDICAL and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and Boston Scientific, you can compare the effects of market volatilities on XTANT MEDICAL 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 XTANT MEDICAL with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and Boston Scientific.
Diversification Opportunities for XTANT MEDICAL and Boston Scientific
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XTANT and Boston is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS and Boston Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Scientific and XTANT MEDICAL 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 XTANT MEDICAL HLDGS 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 has no effect on the direction of XTANT MEDICAL i.e., XTANT MEDICAL and Boston Scientific go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and Boston Scientific
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to under-perform the Boston Scientific. In addition to that, XTANT MEDICAL is 1.79 times more volatile than Boston Scientific. It trades about -0.13 of its total potential returns per unit of risk. Boston Scientific is currently generating about 0.05 per unit of volatility. If you would invest 8,400 in Boston Scientific on September 25, 2024 and sell it today you would earn a total of 100.00 from holding Boston Scientific or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. Boston Scientific
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| Boston Scientific |
XTANT MEDICAL and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and Boston Scientific
The main advantage of trading using opposite XTANT MEDICAL and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL 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.| XTANT MEDICAL vs. Mitsubishi Materials | XTANT MEDICAL vs. PennyMac Mortgage Investment | XTANT MEDICAL vs. Postal Savings Bank | XTANT MEDICAL vs. APPLIED MATERIALS |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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