Correlation Between Boston Beer and PULSION Medical

Can any of the company-specific risk be diversified away by investing in both Boston Beer and PULSION Medical 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 Beer and PULSION Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Boston Beer and PULSION Medical Systems, you can compare the effects of market volatilities on Boston Beer and PULSION Medical 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 Beer with a short position of PULSION Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and PULSION Medical.

Diversification Opportunities for Boston Beer and PULSION Medical

-0.68

Correlation Coefficient

Boston Beer  PULSION Medical

Excellent diversification

The 3 months correlation between Boston and PULSION is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and PULSION Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PULSION Medical Systems and Boston Beer 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 Boston Beer are associated (or correlated) with PULSION Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PULSION Medical Systems has no effect on the direction of Boston Beer i.e., Boston Beer and PULSION Medical go up and down completely randomly.

Pair Corralation between Boston Beer and PULSION Medical

Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the PULSION Medical. But the stock apears to be less risky and, when comparing its historical volatility, The Boston Beer is 2.08 times less risky than PULSION Medical. The stock trades about -0.21 of its potential returns per unit of risk. The PULSION Medical Systems is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,559  in PULSION Medical Systems on April 23, 2025 and sell it today you would earn a total of  431.00  from holding PULSION Medical Systems or generate 27.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

The Boston Beer  vs.  PULSION Medical Systems

Boston Beer

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PULSION Medical Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PULSION Medical Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, PULSION Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boston Beer and PULSION Medical

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

The idea behind The Boston Beer and PULSION Medical Systems 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.