Correlation Between COUSINS PTIES and Boston Properties
Can any of the company-specific risk be diversified away by investing in both COUSINS PTIES and Boston Properties 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 COUSINS PTIES and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COUSINS PTIES INC and Boston Properties, you can compare the effects of market volatilities on COUSINS PTIES and Boston Properties 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 COUSINS PTIES with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of COUSINS PTIES and Boston Properties.
Diversification Opportunities for COUSINS PTIES and Boston Properties
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COUSINS and Boston is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding COUSINS PTIES INC and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and COUSINS PTIES 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 COUSINS PTIES INC are associated (or correlated) with Boston Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Properties has no effect on the direction of COUSINS PTIES i.e., COUSINS PTIES and Boston Properties go up and down completely randomly.
Pair Corralation between COUSINS PTIES and Boston Properties
Assuming the 90 days trading horizon COUSINS PTIES is expected to generate 1.09 times less return on investment than Boston Properties. But when comparing it to its historical volatility, COUSINS PTIES INC is 1.2 times less risky than Boston Properties. It trades about 0.08 of its potential returns per unit of risk. Boston Properties is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,557 in Boston Properties on September 4, 2024 and sell it today you would earn a total of 3,121 from holding Boston Properties or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
COUSINS PTIES INC vs. Boston Properties
Performance |
| Timeline |
| COUSINS PTIES INC |
| Boston Properties |
COUSINS PTIES and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COUSINS PTIES and Boston Properties
The main advantage of trading using opposite COUSINS PTIES and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COUSINS PTIES position performs unexpectedly, Boston Properties 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 Boston Properties will offset losses from the drop in Boston Properties' long position.| COUSINS PTIES vs. KENNAMETAL INC | COUSINS PTIES vs. Public Storage | COUSINS PTIES vs. Jacquet Metal Service | COUSINS PTIES vs. Fidelity National Information |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |