Correlation Between Boston Properties and KLX
Can any of the company-specific risk be diversified away by investing in both Boston Properties and KLX 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 KLX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and KLX Inc, you can compare the effects of market volatilities on Boston Properties and KLX 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 KLX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and KLX.
Diversification Opportunities for Boston Properties and KLX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and KLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and KLX Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLX Inc 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 KLX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLX Inc has no effect on the direction of Boston Properties i.e., Boston Properties and KLX go up and down completely randomly.
Pair Corralation between Boston Properties and KLX
If you would invest 6,075 in Boston Properties on September 14, 2024 and sell it today you would earn a total of 1,924 from holding Boston Properties or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boston Properties vs. KLX Inc
Performance |
| Timeline |
| Boston Properties |
| KLX Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Properties and KLX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and KLX
The main advantage of trading using opposite Boston Properties and KLX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, KLX 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 KLX will offset losses from the drop in KLX'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 |
| KLX vs. Bassett Furniture Industries | KLX vs. Haverty Furniture Companies | KLX vs. Boston Properties | KLX vs. Ambev SA ADR |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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