Correlation Between Aedifica and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Aedifica and Boston Properties 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 Aedifica and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedifica SA and Boston Properties, you can compare the effects of market volatilities on Aedifica and Boston Properties 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 Aedifica with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedifica and Boston Properties.
Diversification Opportunities for Aedifica and Boston Properties
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aedifica and Boston is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aedifica SA and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and Aedifica 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 Aedifica SA are associated (or correlated) with Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of Aedifica i.e., Aedifica and Boston Properties go up and down completely randomly.
Pair Corralation between Aedifica and Boston Properties
Assuming the 90 days horizon Aedifica SA is expected to generate 0.62 times more return on investment than Boston Properties. However, Aedifica SA is 1.61 times less risky than Boston Properties. It trades about 0.25 of its potential returns per unit of risk. Boston Properties is currently generating about -0.1 per unit of risk. If you would invest 6,575 in Aedifica SA on November 20, 2025 and sell it today you would earn a total of 1,095 from holding Aedifica SA or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aedifica SA vs. Boston Properties
Performance |
| Timeline |
| Aedifica SA |
| Boston Properties |
Aedifica and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedifica and Boston Properties
The main advantage of trading using opposite Aedifica and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedifica position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.| Aedifica vs. HASEN IMMOBILIEN N | Aedifica vs. Babcock Wilcox Enterprises | Aedifica vs. NorAm Drilling AS | Aedifica vs. Promis Neurosciences |
| Boston Properties vs. Alexandria Real Estate | Boston Properties vs. Host Hotels Resorts | Boston Properties vs. Camden Property Trust | Boston Properties vs. Omega Healthcare Investors |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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