Correlation Between Boston Scientific and Rex Energy
Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Rex Energy 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 Rex Energy 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 Rex Energy, you can compare the effects of market volatilities on Boston Scientific and Rex Energy 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 Rex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Rex Energy.
Diversification Opportunities for Boston Scientific and Rex Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Rex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Rex Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rex Energy 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 Rex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rex Energy has no effect on the direction of Boston Scientific i.e., Boston Scientific and Rex Energy go up and down completely randomly.
Pair Corralation between Boston Scientific and Rex Energy
If you would invest 6,729 in Boston Scientific Corp on January 23, 2024 and sell it today you would earn a total of 73.00 from holding Boston Scientific Corp or generate 1.08% 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. Rex Energy
Performance |
| Timeline |
| Boston Scientific Corp |
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Scientific and Rex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Scientific and Rex Energy
The main advantage of trading using opposite Boston Scientific and Rex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Rex Energy 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 Rex Energy will offset losses from the drop in Rex Energy's long position.| Boston Scientific vs. HealthStream | Boston Scientific vs. National Research Corp | Boston Scientific vs. HealthEquity | Boston Scientific vs. Health Catalyst |
| Rex Energy vs. Duckhorn Portfolio | Rex Energy vs. Vita Coco | Rex Energy vs. Keurig Dr Pepper | Rex Energy vs. High Performance Beverages |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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