Correlation Between Boston Properties and KROGER
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By analyzing existing cross correlation between Boston Properties and KROGER 37 percent, you can compare the effects of market volatilities on Boston Properties and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and KROGER.
Diversification Opportunities for Boston Properties and KROGER
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boston and KROGER is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and KROGER 37 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 37 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 37 percent has no effect on the direction of Boston Properties i.e., Boston Properties and KROGER go up and down completely randomly.
Pair Corralation between Boston Properties and KROGER
Considering the 90-day investment horizon Boston Properties is expected to generate 4.93 times more return on investment than KROGER. However, Boston Properties is 4.93 times more volatile than KROGER 37 percent. It trades about 0.04 of its potential returns per unit of risk. KROGER 37 percent is currently generating about 0.01 per unit of risk. If you would invest 6,017 in Boston Properties on September 12, 2024 and sell it today you would earn a total of 1,972 from holding Boston Properties or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Boston Properties vs. KROGER 37 percent
Performance |
| Timeline |
| Boston Properties |
| KROGER 37 percent |
Boston Properties and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Properties and KROGER
The main advantage of trading using opposite Boston Properties and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Hooker Furniture | KROGER vs. Franklin Street Properties | KROGER vs. Luxfer Holdings PLC | KROGER vs. Boston Properties |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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