Correlation Between Intuitive Surgical and Boston Scientific
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical 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 Intuitive Surgical and Boston Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Boston Scientific Corp, you can compare the effects of market volatilities on Intuitive Surgical 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 Intuitive Surgical with a short position of Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Boston Scientific.
Diversification Opportunities for Intuitive Surgical and Boston Scientific
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intuitive and Boston is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical 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 Intuitive Surgical 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 Intuitive Surgical 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 Intuitive Surgical i.e., Intuitive Surgical and Boston Scientific go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Boston Scientific
Given the investment horizon of 90 days Intuitive Surgical is expected to under-perform the Boston Scientific. In addition to that, Intuitive Surgical is 1.83 times more volatile than Boston Scientific Corp. It trades about -0.16 of its total potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.0 per unit of volatility. If you would invest 6,779 in Boston Scientific Corp on January 19, 2024 and sell it today you would lose (1.00) from holding Boston Scientific Corp or give up 0.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Boston Scientific Corp
Performance |
| Timeline |
| Intuitive Surgical |
| Boston Scientific Corp |
Intuitive Surgical and Boston Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Boston Scientific
The main advantage of trading using opposite Intuitive Surgical and Boston Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical 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.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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