Correlation Between Boston Properties and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Boston Properties and Grupo Aeroportuario 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 Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and Grupo Aeroportuario del, you can compare the effects of market volatilities on Boston Properties and Grupo Aeroportuario 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 Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and Grupo Aeroportuario.
Diversification Opportunities for Boston Properties and Grupo Aeroportuario
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boston and Grupo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del 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 Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Boston Properties i.e., Boston Properties and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Boston Properties and Grupo Aeroportuario
Considering the 90-day investment horizon Boston Properties is expected to generate 0.81 times more return on investment than Grupo Aeroportuario. However, Boston Properties is 1.23 times less risky than Grupo Aeroportuario. It trades about 0.07 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.03 per unit of risk. If you would invest 6,095 in Boston Properties on September 2, 2024 and sell it today you would earn a total of 2,104 from holding Boston Properties or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Properties vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Boston Properties |
| Grupo Aeroportuario del |
Boston Properties and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and Grupo Aeroportuario
The main advantage of trading using opposite Boston Properties and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| Boston Properties vs. Douglas Emmett | Boston Properties vs. Vornado Realty Trust | Boston Properties vs. Highwoods Properties | Boston Properties vs. Piedmont Office Realty |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG | Grupo Aeroportuario vs. Grupo Aeroportuario del |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |