Correlation Between Boston Properties and America Great
Can any of the company-specific risk be diversified away by investing in both Boston Properties and America Great 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 America Great into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and America Great Health, you can compare the effects of market volatilities on Boston Properties and America Great 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 America Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and America Great.
Diversification Opportunities for Boston Properties and America Great
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and America is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and America Great Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Great Health 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 America Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Great Health has no effect on the direction of Boston Properties i.e., Boston Properties and America Great go up and down completely randomly.
Pair Corralation between Boston Properties and America Great
If you would invest 8,275 in Boston Properties on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Boston Properties or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Properties vs. America Great Health
Performance |
| Timeline |
| Boston Properties |
| America Great Health |
Boston Properties and America Great Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and America Great
The main advantage of trading using opposite Boston Properties and America Great positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, America Great 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 America Great will offset losses from the drop in America Great's long position.| Boston Properties vs. SL Green Realty | Boston Properties vs. Douglas Emmett | Boston Properties vs. Kilroy Realty Corp | Boston Properties vs. Alexandria Real Estate |
| America Great vs. Boston Properties | America Great vs. Kilroy Realty Corp | America Great vs. SL Green Realty | America Great vs. Vornado Realty Trust |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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