Correlation Between Boston Properties and Site Centers
Can any of the company-specific risk be diversified away by investing in both Boston Properties and Site Centers 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 Site Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and Site Centers Corp, you can compare the effects of market volatilities on Boston Properties and Site Centers 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 Site Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and Site Centers.
Diversification Opportunities for Boston Properties and Site Centers
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Site is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and Site Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Site Centers Corp 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 Site Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Site Centers Corp has no effect on the direction of Boston Properties i.e., Boston Properties and Site Centers go up and down completely randomly.
Pair Corralation between Boston Properties and Site Centers
Considering the 90-day investment horizon Boston Properties is expected to generate 1.12 times more return on investment than Site Centers. However, Boston Properties is 1.12 times more volatile than Site Centers Corp. It trades about -0.1 of its potential returns per unit of risk. Site Centers Corp is currently generating about -0.27 per unit of risk. If you would invest 8,619 in Boston Properties on August 30, 2024 and sell it today you would lose (333.00) from holding Boston Properties or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Properties vs. Site Centers Corp
Performance |
| Timeline |
| Boston Properties |
| Site Centers Corp |
Boston Properties and Site Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and Site Centers
The main advantage of trading using opposite Boston Properties and Site Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, Site Centers 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 Site Centers will offset losses from the drop in Site Centers' 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 |
| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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