Correlation Between Douglas Emmett and Hudson Pacific
Can any of the company-specific risk be diversified away by investing in both Douglas Emmett and Hudson Pacific 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 Douglas Emmett and Hudson Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Douglas Emmett and Hudson Pacific Properties, you can compare the effects of market volatilities on Douglas Emmett and Hudson Pacific 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 Douglas Emmett with a short position of Hudson Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Douglas Emmett and Hudson Pacific.
Diversification Opportunities for Douglas Emmett and Hudson Pacific
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Douglas and Hudson is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Douglas Emmett and Hudson Pacific Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Pacific Properties and Douglas Emmett 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 Douglas Emmett are associated (or correlated) with Hudson Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Pacific Properties has no effect on the direction of Douglas Emmett i.e., Douglas Emmett and Hudson Pacific go up and down completely randomly.
Pair Corralation between Douglas Emmett and Hudson Pacific
Considering the 90-day investment horizon Douglas Emmett is expected to under-perform the Hudson Pacific. But the stock apears to be less risky and, when comparing its historical volatility, Douglas Emmett is 1.53 times less risky than Hudson Pacific. The stock trades about -0.1 of its potential returns per unit of risk. The Hudson Pacific Properties is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Hudson Pacific Properties on July 20, 2025 and sell it today you would earn a total of 7.00 from holding Hudson Pacific Properties or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Douglas Emmett vs. Hudson Pacific Properties
Performance |
| Timeline |
| Douglas Emmett |
| Hudson Pacific Properties |
Douglas Emmett and Hudson Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Douglas Emmett and Hudson Pacific
The main advantage of trading using opposite Douglas Emmett and Hudson Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Douglas Emmett position performs unexpectedly, Hudson Pacific 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 Hudson Pacific will offset losses from the drop in Hudson Pacific's long position.| Douglas Emmett vs. Hudson Pacific Properties | Douglas Emmett vs. Kilroy Realty Corp | Douglas Emmett vs. COPT Defense Properties | Douglas Emmett vs. Highwoods Properties |
| Hudson Pacific vs. Douglas Emmett | Hudson Pacific vs. Brandywine Realty Trust | Hudson Pacific vs. Kilroy Realty Corp | Hudson Pacific vs. Piedmont Office Realty |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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