Correlation Between Cooper Companies and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Cooper Companies 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 Cooper Companies and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Cooper Companies and Boston Scientific Corp, you can compare the effects of market volatilities on Cooper Companies 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 Cooper Companies with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Companies and Boston Scientific.
Diversification Opportunities for Cooper Companies and Boston Scientific
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cooper and Boston is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies 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 Cooper Companies 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 The Cooper Companies 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 Cooper Companies i.e., Cooper Companies and Boston Scientific go up and down completely randomly.
Pair Corralation between Cooper Companies and Boston Scientific
Considering the 90-day investment horizon The Cooper Companies is expected to under-perform the Boston Scientific. In addition to that, Cooper Companies is 1.48 times more volatile than Boston Scientific Corp. It trades about -0.38 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.15 per unit of volatility. If you would invest 6,729 in Boston Scientific Corp on January 24, 2024 and sell it today you would earn a total of 170.00 from holding Boston Scientific Corp or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Cooper Companies vs. Boston Scientific Corp
Performance |
| Timeline |
| Cooper Companies |
| Boston Scientific Corp |
Cooper Companies and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Companies and Boston Scientific
The main advantage of trading using opposite Cooper Companies and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies 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.| Cooper Companies vs. HealthStream | Cooper Companies vs. National Research Corp | Cooper Companies vs. HealthEquity | Cooper Companies vs. Health Catalyst |
| Boston Scientific vs. HealthStream | Boston Scientific vs. National Research Corp | Boston Scientific vs. HealthEquity | Boston Scientific vs. Health Catalyst |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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