Correlation Between DAX Index and Boston Properties
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By analyzing existing cross correlation between DAX Index and Boston Properties, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Boston Properties.
Diversification Opportunities for DAX Index and Boston Properties
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and Boston is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Boston Properties go up and down completely randomly.
Pair Corralation between DAX Index and Boston Properties
Assuming the 90 days trading horizon DAX Index is expected to generate 0.58 times more return on investment than Boston Properties. However, DAX Index is 1.72 times less risky than Boston Properties. It trades about 0.17 of its potential returns per unit of risk. Boston Properties is currently generating about -0.07 per unit of risk. If you would invest 1,990,914 in DAX Index on December 29, 2024 and sell it today you would earn a total of 255,238 from holding DAX Index or generate 12.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Boston Properties
Performance |
Timeline |
DAX Index and Boston Properties Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Boston Properties
Pair trading matchups for Boston Properties
Pair Trading with DAX Index and Boston Properties
The main advantage of trading using opposite DAX Index and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.DAX Index vs. SIDETRADE EO 1 | DAX Index vs. National Retail Properties | DAX Index vs. TOMBADOR IRON LTD | DAX Index vs. CALTAGIRONE EDITORE |
Boston Properties vs. ALERION CLEANPOWER | Boston Properties vs. Clean Energy Fuels | Boston Properties vs. Nok Airlines PCL | Boston Properties vs. ON SEMICONDUCTOR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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