Correlation Between Cousins Properties and Boston Properties
Can any of the company-specific risk be diversified away by investing in both Cousins Properties 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 Cousins Properties and Boston Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cousins Properties Incorporated and Boston Properties, you can compare the effects of market volatilities on Cousins Properties 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 Cousins Properties with a short position of Boston Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cousins Properties and Boston Properties.
Diversification Opportunities for Cousins Properties and Boston Properties
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cousins and Boston is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cousins Properties Incorporate and Boston Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Properties and Cousins 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 Cousins Properties Incorporated 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 Cousins Properties i.e., Cousins Properties and Boston Properties go up and down completely randomly.
Pair Corralation between Cousins Properties and Boston Properties
Considering the 90-day investment horizon Cousins Properties is expected to generate 2.72 times less return on investment than Boston Properties. But when comparing it to its historical volatility, Cousins Properties Incorporated is 1.41 times less risky than Boston Properties. It trades about 0.05 of its potential returns per unit of risk. Boston Properties is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,491 in Boston Properties on April 25, 2025 and sell it today you would earn a total of 658.00 from holding Boston Properties or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cousins Properties Incorporate vs. Boston Properties
Performance |
| Timeline |
| Cousins Properties |
| Boston Properties |
Cousins Properties and Boston Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cousins Properties and Boston Properties
The main advantage of trading using opposite Cousins Properties and Boston Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cousins Properties 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.| Cousins Properties vs. COPT Defense Properties | Cousins Properties vs. Highwoods Properties | Cousins Properties vs. Piedmont Office Realty | Cousins Properties vs. Douglas Emmett |
| Boston Properties vs. Douglas Emmett | Boston Properties vs. Hudson Pacific Properties | Boston Properties vs. Cousins Properties Incorporated | Boston Properties vs. COPT Defense Properties |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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