Correlation Between Ssur Hf and Boston Scientific

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

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

Diversification Opportunities for Ssur Hf and Boston Scientific

0.0

Correlation Coefficient

Ssur Hf  Boston Scientific

Pay attention - limited upside

The 3 months correlation between Ssur and Boston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ssur hf 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 Ssur Hf 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 ssur hf 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 Ssur Hf i.e., Ssur Hf and Boston Scientific go up and down completely randomly.

Pair Corralation between Ssur Hf and Boston Scientific

Assuming the 90 days horizon Ssur Hf is expected to generate 1.99 times less return on investment than Boston Scientific. But when comparing it to its historical volatility, ssur hf is 1.59 times less risky than Boston Scientific. It trades about 0.09 of its potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  7,671  in Boston Scientific Corp on September 21, 2024 and sell it today you would earn a total of  1,195  from holding Boston Scientific Corp or generate 15.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

ssur hf  vs.  Boston Scientific Corp

ssur hf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ssur hf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ssur Hf is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Boston Scientific Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Scientific Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Boston Scientific is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ssur Hf and Boston Scientific

The main advantage of trading using opposite Ssur Hf and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssur Hf 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 ssur hf 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.