Correlation Between Boston Scientific and Ainos

Can any of the company-specific risk be diversified away by investing in both Boston Scientific and Ainos 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 Ainos 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 Ainos Inc, you can compare the effects of market volatilities on Boston Scientific and Ainos 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 Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Scientific and Ainos.

Diversification Opportunities for Boston Scientific and Ainos

-0.74

Correlation Coefficient

Boston Scientific  Ainos

Pay attention - limited upside

The 3 months correlation between Boston and Ainos is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Boston Scientific Corp and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc 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 Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Boston Scientific i.e., Boston Scientific and Ainos go up and down completely randomly.

Pair Corralation between Boston Scientific and Ainos

Considering the 90-day investment horizon Boston Scientific Corp is expected to generate 0.21 times more return on investment than Ainos. However, Boston Scientific Corp is 4.86 times less risky than Ainos. It trades about 0.04 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.07 per unit of risk. If you would invest  8,700  in Boston Scientific Corp on August 17, 2024 and sell it today you would earn a total of  59.00  from holding Boston Scientific Corp or generate 0.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Boston Scientific Corp  vs.  Ainos Inc

Boston Scientific Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Scientific Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Boston Scientific may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Boston Scientific and Ainos

The main advantage of trading using opposite Boston Scientific and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Scientific position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.

The idea behind Boston Scientific Corp and Ainos Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.