Correlation Between Boston Scientific and SCANDMEDICAL SOLDK-040

Can any of the company-specific risk be diversified away by investing in both Boston Scientific and SCANDMEDICAL SOLDK-040 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 Boston Scientific and SCANDMEDICAL SOLDK-040 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boston Scientific and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on Boston Scientific and SCANDMEDICAL SOLDK-040 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 Boston Scientific with a short position of SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and SCANDMEDICAL SOLDK-040.

Diversification Opportunities for Boston Scientific and SCANDMEDICAL SOLDK-040

-0.73

Correlation Coefficient

Boston Scientific  SCANDMEDICAL SOLDK-040

Pay attention - limited upside

The 3 months correlation between Boston and SCANDMEDICAL is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 and Boston Scientific 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 Boston Scientific are associated (or correlated) with SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of Boston Scientific i.e., Boston Scientific and SCANDMEDICAL SOLDK-040 go up and down completely randomly.

Pair Corralation between Boston Scientific and SCANDMEDICAL SOLDK-040

Assuming the 90 days horizon Boston Scientific is expected to generate 1.01 times more return on investment than SCANDMEDICAL SOLDK-040. However, Boston Scientific is 1.01 times more volatile than SCANDMEDICAL SOLDK 040. It trades about 0.11 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about -0.13 per unit of risk. If you would invest  8,700  in Boston Scientific on November 28, 2024 and sell it today you would earn a total of  950.00  from holding Boston Scientific or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Boston Scientific  vs.  SCANDMEDICAL SOLDK 040

Boston Scientific

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Scientific are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Boston Scientific may actually be approaching a critical reversion point that can send shares even higher in March 2025.

SCANDMEDICAL SOLDK 040

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCANDMEDICAL SOLDK 040 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Boston Scientific and SCANDMEDICAL SOLDK-040

The main advantage of trading using opposite Boston Scientific and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.

The idea behind Boston Scientific and SCANDMEDICAL SOLDK 040 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.