Correlation Between Boston Properties and SFCCN

Can any of the company-specific risk be diversified away by investing in both Boston Properties and SFCCN 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 Boston Properties and SFCCN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boston Properties and SFCCN 53 13 MAY 28, you can compare the effects of market volatilities on Boston Properties and SFCCN 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 SFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Properties and SFCCN.

Diversification Opportunities for Boston Properties and SFCCN

-0.73

Correlation Coefficient

Boston Properties  SFCCN

Pay attention - limited upside

The 3 months correlation between Boston and SFCCN is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and SFCCN 53 13 MAY 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFCCN 53 13 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 SFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFCCN 53 13 has no effect on the direction of Boston Properties i.e., Boston Properties and SFCCN go up and down completely randomly.

Pair Corralation between Boston Properties and SFCCN

Considering the 90-day investment horizon Boston Properties is expected to under-perform the SFCCN. In addition to that, Boston Properties is 2.04 times more volatile than SFCCN 53 13 MAY 28. It trades about -0.14 of its total potential returns per unit of risk. SFCCN 53 13 MAY 28 is currently generating about -0.22 per unit of volatility. If you would invest  9,797  in SFCCN 53 13 MAY 28 on October 25, 2024 and sell it today you would lose (397.00) from holding SFCCN 53 13 MAY 28 or give up 4.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	33.9%
Values	Daily Returns

Boston Properties  vs.  SFCCN 53 13 MAY 28

Boston Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boston Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

SFCCN 53 13

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SFCCN 53 13 MAY 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for SFCCN 53 13 MAY 28 investors.

Pair Trading with Boston Properties and SFCCN

The main advantage of trading using opposite Boston Properties and SFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Properties position performs unexpectedly, SFCCN 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 SFCCN will offset losses from the drop in SFCCN's long position.

The idea behind Boston Properties and SFCCN 53 13 MAY 28 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.