Correlation Between Boston Scientific and Cadus
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Cadus 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 Cadus 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 Cadus, you can compare the effects of market volatilities on Boston Scientific and Cadus 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 Cadus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Cadus.
Diversification Opportunities for Boston Scientific and Cadus
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Cadus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Cadus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadus 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 Cadus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadus has no effect on the direction of Boston Scientific i.e., Boston Scientific and Cadus go up and down completely randomly.
Pair Corralation between Boston Scientific and Cadus
If you would invest 5,193 in Boston Scientific Corp on January 19, 2024 and sell it today you would earn a total of 1,549 from holding Boston Scientific Corp or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boston Scientific Corp vs. Cadus
Performance |
| Timeline |
| Boston Scientific Corp |
| Cadus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Scientific and Cadus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Cadus
The main advantage of trading using opposite Boston Scientific and Cadus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Cadus 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 Cadus will offset losses from the drop in Cadus' long position.| Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
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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