Correlation Between Ucommune International and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Ucommune International 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 Ucommune International and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ucommune International and Boston Properties, you can compare the effects of market volatilities on Ucommune International 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 Ucommune International with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucommune International and Boston Properties.
Diversification Opportunities for Ucommune International and Boston Properties
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ucommune and Boston is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ucommune International and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and Ucommune International 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 Ucommune International 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 Ucommune International i.e., Ucommune International and Boston Properties go up and down completely randomly.
Pair Corralation between Ucommune International and Boston Properties
Allowing for the 90-day total investment horizon Ucommune International is expected to under-perform the Boston Properties. In addition to that, Ucommune International is 3.23 times more volatile than Boston Properties. It trades about -0.04 of its total potential returns per unit of risk. Boston Properties is currently generating about 0.03 per unit of volatility. If you would invest 6,565 in Boston Properties on August 27, 2024 and sell it today you would earn a total of 1,501 from holding Boston Properties or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ucommune International vs. Boston Properties
Performance |
| Timeline |
| Ucommune International |
| Boston Properties |
Ucommune International and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ucommune International and Boston Properties
The main advantage of trading using opposite Ucommune International and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ucommune International 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.| Ucommune International vs. MDJM | Ucommune International vs. New Concept Energy | Ucommune International vs. Fangdd Network Group | Ucommune International vs. Jammin Java Corp |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |