Correlation Between Boston Properties and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Boston Properties and Gaztransport 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 Properties and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and Gaztransport et Technigaz, you can compare the effects of market volatilities on Boston Properties and Gaztransport 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 Properties with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and Gaztransport.
Diversification Opportunities for Boston Properties and Gaztransport
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boston and Gaztransport is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz and Boston Properties 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 Properties are associated (or correlated) with Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Boston Properties i.e., Boston Properties and Gaztransport go up and down completely randomly.
Pair Corralation between Boston Properties and Gaztransport
Assuming the 90 days trading horizon Boston Properties is expected to generate 1.5 times more return on investment than Gaztransport. However, Boston Properties is 1.5 times more volatile than Gaztransport et Technigaz. It trades about 0.03 of its potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.05 per unit of risk. If you would invest 6,362 in Boston Properties on September 3, 2024 and sell it today you would earn a total of 1,731 from holding Boston Properties or generate 27.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.12% |
| Values | Daily Returns |
Boston Properties vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Boston Properties |
| Gaztransport et Technigaz |
Boston Properties and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and Gaztransport
The main advantage of trading using opposite Boston Properties and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Boston Properties vs. Southwest Airlines Co | Boston Properties vs. Broadcom | Boston Properties vs. Made Tech Group | Boston Properties vs. Uber Technologies |
| Gaztransport vs. Cairo Communication SpA | Gaztransport vs. Lundin Mining Corp | Gaztransport vs. Zegona Communications Plc | Gaztransport vs. Greenroc Mining PLC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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