Correlation Between Boston Scientific and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Uniper SE 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 Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Scientific Corp and Uniper SE, you can compare the effects of market volatilities on Boston Scientific and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Uniper SE.
Diversification Opportunities for Boston Scientific and Uniper SE
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Uniper is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Corp are associated (or correlated) with Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Boston Scientific i.e., Boston Scientific and Uniper SE go up and down completely randomly.
Pair Corralation between Boston Scientific and Uniper SE
Assuming the 90 days trading horizon Boston Scientific Corp is expected to generate 0.38 times more return on investment than Uniper SE. However, Boston Scientific Corp is 2.66 times less risky than Uniper SE. It trades about 0.11 of its potential returns per unit of risk. Uniper SE is currently generating about -0.12 per unit of risk. If you would invest 8,938 in Boston Scientific Corp on September 25, 2024 and sell it today you would earn a total of 156.00 from holding Boston Scientific Corp or generate 1.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Boston Scientific Corp vs. Uniper SE
Performance |
Timeline |
Boston Scientific Corp |
Uniper SE |
Boston Scientific and Uniper SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boston Scientific and Uniper SE
The main advantage of trading using opposite Boston Scientific and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.Boston Scientific vs. Uniper SE | Boston Scientific vs. Mulberry Group PLC | Boston Scientific vs. London Security Plc | Boston Scientific vs. Triad Group PLC |
Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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