Correlation Between Quantum Blockchain and Boston Scientific

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

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

Diversification Opportunities for Quantum Blockchain and Boston Scientific

0.69

Correlation Coefficient

Quantum Blockchain  Boston Scientific

Poor diversification

The 3 months correlation between Quantum and Boston is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Blockchain Technologie 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 Quantum Blockchain 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 Quantum Blockchain Technologies 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 Quantum Blockchain i.e., Quantum Blockchain and Boston Scientific go up and down completely randomly.

Pair Corralation between Quantum Blockchain and Boston Scientific

Assuming the 90 days trading horizon Quantum Blockchain Technologies is expected to under-perform the Boston Scientific. In addition to that, Quantum Blockchain is 7.39 times more volatile than Boston Scientific Corp. It trades about -0.2 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about -0.14 per unit of volatility. If you would invest  9,142  in Boston Scientific Corp on September 22, 2024 and sell it today you would lose (225.00) from holding Boston Scientific Corp or give up 2.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Quantum Blockchain Technologie  vs.  Boston Scientific Corp

Quantum Blockchain

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Blockchain Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Quantum Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Boston Scientific Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Scientific Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Boston Scientific is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Quantum Blockchain and Boston Scientific

The main advantage of trading using opposite Quantum Blockchain and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Blockchain 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.

The idea behind Quantum Blockchain Technologies and Boston Scientific Corp 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.