Correlation Between Boston Trust and Alpine Global
Can any of the company-specific risk be diversified away by investing in both Boston Trust and Alpine Global 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 Trust and Alpine Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Trust Asset and Alpine Global Infrastructure, you can compare the effects of market volatilities on Boston Trust and Alpine Global 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 Trust with a short position of Alpine Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Trust and Alpine Global.
Diversification Opportunities for Boston Trust and Alpine Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and Alpine is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Boston Trust Asset and Alpine Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Global Infras and Boston Trust 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 Trust Asset are associated (or correlated) with Alpine Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Global Infras has no effect on the direction of Boston Trust i.e., Boston Trust and Alpine Global go up and down completely randomly.
Pair Corralation between Boston Trust and Alpine Global
Assuming the 90 days horizon Boston Trust Asset is expected to generate 0.87 times more return on investment than Alpine Global. However, Boston Trust Asset is 1.15 times less risky than Alpine Global. It trades about 0.36 of its potential returns per unit of risk. Alpine Global Infrastructure is currently generating about 0.19 per unit of risk. If you would invest 6,461 in Boston Trust Asset on September 1, 2024 and sell it today you would earn a total of 266.00 from holding Boston Trust Asset or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Boston Trust Asset vs. Alpine Global Infrastructure
Performance |
| Timeline |
| Boston Trust Asset |
| Alpine Global Infras |
Boston Trust and Alpine Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Trust and Alpine Global
The main advantage of trading using opposite Boston Trust and Alpine Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Trust position performs unexpectedly, Alpine Global 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 Alpine Global will offset losses from the drop in Alpine Global's long position.| Boston Trust vs. Walden Asset Management | Boston Trust vs. Boston Trust Midcap | Boston Trust vs. Boston Trust Small | Boston Trust vs. Invesco Disciplined Equity |
| Alpine Global vs. Wasatch Global Opportunities | Alpine Global vs. T Rowe Price | Alpine Global vs. Us Global Investors | Alpine Global vs. Mirova Global Green |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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