Correlation Between Fundo De and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Fundo De 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 Fundo De and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundo de Investimento and Boston Properties, you can compare the effects of market volatilities on Fundo De 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 Fundo De with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundo De and Boston Properties.
Diversification Opportunities for Fundo De and Boston Properties
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fundo and Boston is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fundo de Investimento and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and Fundo De 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 Fundo de Investimento 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 Fundo De i.e., Fundo De and Boston Properties go up and down completely randomly.
Pair Corralation between Fundo De and Boston Properties
Assuming the 90 days trading horizon Fundo de Investimento is expected to under-perform the Boston Properties. But the fund apears to be less risky and, when comparing its historical volatility, Fundo de Investimento is 3.33 times less risky than Boston Properties. The fund trades about -0.18 of its potential returns per unit of risk. The Boston Properties is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,165 in Boston Properties on September 1, 2024 and sell it today you would earn a total of 1,825 from holding Boston Properties or generate 57.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundo de Investimento vs. Boston Properties
Performance |
| Timeline |
| Fundo de Investimento |
| Boston Properties |
Fundo De and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundo De and Boston Properties
The main advantage of trading using opposite Fundo De and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundo De 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.| Fundo De vs. Energisa SA | Fundo De vs. BTG Pactual Logstica | Fundo De vs. Plano Plano Desenvolvimento | Fundo De vs. Companhia Habitasul de |
| Boston Properties vs. Bio Techne | Boston Properties vs. STMicroelectronics NV | Boston Properties vs. GP Investments | Boston Properties vs. Technos SA |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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