Correlation Between Gamma Communications and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Gamma Communications 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 Gamma Communications and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamma Communications PLC and Boston Scientific Corp, you can compare the effects of market volatilities on Gamma Communications 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 Gamma Communications with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and Boston Scientific.
Diversification Opportunities for Gamma Communications and Boston Scientific
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamma and Boston is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications PLC 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 Gamma Communications 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 Gamma Communications PLC 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 Gamma Communications i.e., Gamma Communications and Boston Scientific go up and down completely randomly.
Pair Corralation between Gamma Communications and Boston Scientific
Assuming the 90 days trading horizon Gamma Communications PLC is expected to under-perform the Boston Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Gamma Communications PLC is 1.11 times less risky than Boston Scientific. The stock trades about -0.25 of its potential returns per unit of risk. The Boston Scientific Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,094 in Boston Scientific Corp on December 24, 2024 and sell it today you would earn a total of 964.00 from holding Boston Scientific Corp or generate 10.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Gamma Communications PLC vs. Boston Scientific Corp
Performance |
Timeline |
Gamma Communications PLC |
Boston Scientific Corp |
Gamma Communications and Boston Scientific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gamma Communications and Boston Scientific
The main advantage of trading using opposite Gamma Communications and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications 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.Gamma Communications vs. Telecom Italia SpA | Gamma Communications vs. Allianz Technology Trust | Gamma Communications vs. Vitec Software Group | Gamma Communications vs. Cairo Communication SpA |
Boston Scientific vs. Pets at Home | Boston Scientific vs. American Homes 4 | Boston Scientific vs. Cairn Homes PLC | Boston Scientific vs. Southern Copper Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |