Correlation Between Boston Scientific and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging, you can compare the effects of market volatilities on Boston Scientific and Elbit Imaging 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 Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Elbit Imaging.
Diversification Opportunities for Boston Scientific and Elbit Imaging
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Elbit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging 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 Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Boston Scientific i.e., Boston Scientific and Elbit Imaging go up and down completely randomly.
Pair Corralation between Boston Scientific and Elbit Imaging
If you would invest 6,622 in Boston Scientific Corp on February 18, 2024 and sell it today you would earn a total of 843.00 from holding Boston Scientific Corp or generate 12.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.59% |
Values | Daily Returns |
Boston Scientific Corp vs. Elbit Imaging
Performance |
Timeline |
Boston Scientific Corp |
Elbit Imaging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Scientific and Elbit Imaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boston Scientific and Elbit Imaging
The main advantage of trading using opposite Boston Scientific and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.Boston Scientific vs. Stryker | Boston Scientific vs. Abbott Laboratories | Boston Scientific vs. Medtronic PLC | Boston Scientific vs. DexCom Inc |
Elbit Imaging vs. Edwards Lifesciences Corp | Elbit Imaging vs. Medtronic PLC | Elbit Imaging vs. Abbott Laboratories | Elbit Imaging vs. Boston Scientific Corp |
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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