Correlation Between Boston Properties and Genfit
Can any of the company-specific risk be diversified away by investing in both Boston Properties and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and Genfit, you can compare the effects of market volatilities on Boston Properties and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and Genfit.
Diversification Opportunities for Boston Properties and Genfit
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boston and Genfit is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Boston Properties i.e., Boston Properties and Genfit go up and down completely randomly.
Pair Corralation between Boston Properties and Genfit
Considering the 90-day investment horizon Boston Properties is expected to generate 0.42 times more return on investment than Genfit. However, Boston Properties is 2.39 times less risky than Genfit. It trades about 0.05 of its potential returns per unit of risk. Genfit is currently generating about -0.44 per unit of risk. If you would invest 7,903 in Boston Properties on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Boston Properties or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Properties vs. Genfit
Performance |
| Timeline |
| Boston Properties |
| Genfit |
Boston Properties and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and Genfit
The main advantage of trading using opposite Boston Properties and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit'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 |
| Genfit vs. Puma Biotechnology | Genfit vs. Iovance Biotherapeutics | Genfit vs. Sarepta Therapeutics | Genfit vs. Day One Biopharmaceuticals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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