Correlation Between Mango Capital and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Mango Capital 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 Mango Capital and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mango Capital and Boston Properties, you can compare the effects of market volatilities on Mango Capital 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 Mango Capital with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mango Capital and Boston Properties.
Diversification Opportunities for Mango Capital and Boston Properties
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mango and Boston is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mango Capital and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and Mango Capital 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 Mango Capital 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 Mango Capital i.e., Mango Capital and Boston Properties go up and down completely randomly.
Pair Corralation between Mango Capital and Boston Properties
Given the investment horizon of 90 days Mango Capital is expected to generate 0.42 times more return on investment than Boston Properties. However, Mango Capital is 2.41 times less risky than Boston Properties. It trades about 0.21 of its potential returns per unit of risk. Boston Properties is currently generating about 0.01 per unit of risk. If you would invest 535.00 in Mango Capital on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Mango Capital or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mango Capital vs. Boston Properties
Performance |
| Timeline |
| Mango Capital |
| Boston Properties |
Mango Capital and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mango Capital and Boston Properties
The main advantage of trading using opposite Mango Capital and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mango Capital 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.| Mango Capital vs. Boston Properties | Mango Capital vs. Kilroy Realty Corp | Mango Capital vs. SL Green Realty | Mango Capital vs. Vornado Realty Trust |
| Boston Properties vs. SL Green Realty | Boston Properties vs. Douglas Emmett | Boston Properties vs. Kilroy Realty Corp | Boston Properties vs. Alexandria Real Estate |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |