Correlation Between Boston Properties and TruBridge
Can any of the company-specific risk be diversified away by investing in both Boston Properties and TruBridge 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 TruBridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Properties and TruBridge, you can compare the effects of market volatilities on Boston Properties and TruBridge 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 TruBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and TruBridge.
Diversification Opportunities for Boston Properties and TruBridge
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and TruBridge is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and TruBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TruBridge 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 TruBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TruBridge has no effect on the direction of Boston Properties i.e., Boston Properties and TruBridge go up and down completely randomly.
Pair Corralation between Boston Properties and TruBridge
Considering the 90-day investment horizon Boston Properties is expected to generate 6.26 times less return on investment than TruBridge. But when comparing it to its historical volatility, Boston Properties is 1.64 times less risky than TruBridge. It trades about 0.07 of its potential returns per unit of risk. TruBridge is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,006 in TruBridge on November 3, 2024 and sell it today you would earn a total of 1,476 from holding TruBridge or generate 146.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Boston Properties vs. TruBridge
Performance |
| Timeline |
| Boston Properties |
| TruBridge |
Boston Properties and TruBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and TruBridge
The main advantage of trading using opposite Boston Properties and TruBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, TruBridge 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 TruBridge will offset losses from the drop in TruBridge'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 |
| TruBridge vs. Bm Technologies | TruBridge vs. Cadence Design Systems | TruBridge vs. Bill Com Holdings | TruBridge vs. Entegris |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |