Boston Properties Stock Volatility
| BXP Stock | USD 62.93 1.59 2.59% |
Boston Properties secures Sharpe Ratio (or Efficiency) of -0.0643, which signifies that the company had a -0.0643% return per unit of risk over the last 3 months. Boston Properties exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Boston Properties' Standard Deviation of 2.31, mean deviation of 1.82, and Risk Adjusted Performance of (0.01) to double-check the risk estimate we provide. Key indicators related to Boston Properties' volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Boston Properties Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Boston daily returns, and it is calculated using variance and standard deviation. We also use Boston's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Boston Properties volatility.
Boston |
ESG Sustainability
While most ESG disclosures are voluntary, Boston Properties' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Boston Properties' managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Boston Properties can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Boston Properties at lower prices. For example, an investor can purchase Boston stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Boston Properties' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Boston Stock
Moving against Boston Stock
| 0.5 | AHT-PI | Ashford Hospitality Trust | PairCorr |
| 0.5 | AHT-PD | Ashford Hospitality Trust | PairCorr |
| 0.48 | IRM | Iron Mountain rporated Financial Report 2nd of May 2024 | PairCorr |
| 0.45 | AHT-PF | Ashford Hospitality Trust | PairCorr |
| 0.42 | AHT-PG | Ashford Hospitality Trust | PairCorr |
Boston Properties Market Sensitivity And Downside Risk
Boston Properties' beta coefficient measures the volatility of Boston stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Boston stock's returns against your selected market. In other words, Boston Properties's beta of 2.5 provides an investor with an approximation of how much risk Boston Properties stock can potentially add to one of your existing portfolios. Boston Properties exhibits very low volatility with skewness of -0.17 and kurtosis of 0.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Boston Properties' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Boston Properties' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Boston Properties Demand TrendCheck current 90 days Boston Properties correlation with market (NYSE Composite)Boston Beta |
Boston standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.33 |
It is essential to understand the difference between upside risk (as represented by Boston Properties's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Boston Properties' daily returns or price. Since the actual investment returns on holding a position in boston stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Boston Properties.
Using Boston Put Option to Manage Risk
Put options written on Boston Properties grant holders of the option the right to sell a specified amount of Boston Properties at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Boston Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Boston Properties' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Boston Properties will be realized, the loss incurred will be offset by the profits made with the option trade.
Boston Properties' PUT expiring on 2024-05-17
Profit |
| Boston Properties Price At Expiration |
Current Boston Properties Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $72.5 | -0.752 | 0.0274 | 28 | 2024-05-17 | 8.0 - 11.1 | 13.6 | View |
Put | 2024-05-17 PUT at $70.0 | -0.77 | 0.0364 | 215 | 2024-05-17 | 6.8 - 9.4 | 6.2 | View |
Put | 2024-05-17 PUT at $67.5 | -0.8751 | 0.0543 | 47 | 2024-05-17 | 4.2 - 5.4 | 9.0 | View |
Put | 2024-05-17 PUT at $65.0 | -0.622 | 0.0663 | 73 | 2024-05-17 | 3.4 - 3.6 | 2.8 | View |
Put | 2024-05-17 PUT at $62.5 | -0.4523 | 0.0682 | 109 | 2024-05-17 | 2.0 - 2.2 | 1.92 | View |
Put | 2024-05-17 PUT at $60.0 | -0.2952 | 0.0564 | 451 | 2024-05-17 | 1.15 - 1.25 | 0.95 | View |
Put | 2024-05-17 PUT at $57.5 | -0.1704 | 0.0403 | 159 | 2024-05-17 | 0.6 - 0.7 | 0.6 | View |
Put | 2024-05-17 PUT at $55.0 | -0.0925 | 0.0249 | 1932 | 2024-05-17 | 0.3 - 0.4 | 0.3 | View |
Put | 2024-05-17 PUT at $52.5 | -0.0587 | 0.0155 | 216 | 2024-05-17 | 0.15 - 0.25 | 0.24 | View |
Put | 2024-05-17 PUT at $50.0 | -0.0407 | 0.0101 | 95 | 2024-05-17 | 0.05 - 0.25 | 0.4 | View |
Put | 2024-05-17 PUT at $47.5 | -0.0262 | 0.0064 | 67 | 2024-05-17 | 0.05 - 0.15 | 0.18 | View |
Boston Properties Stock Volatility Analysis
Volatility refers to the frequency at which Boston Properties stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Boston Properties' price changes. Investors will then calculate the volatility of Boston Properties' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Boston Properties' volatility:
Historical Volatility
This type of stock volatility measures Boston Properties' fluctuations based on previous trends. It's commonly used to predict Boston Properties' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Boston Properties' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Boston Properties' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Boston Properties Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Boston Properties Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 2.5013 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Boston Properties will likely underperform.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Boston Properties or Diversified REITs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Boston Properties' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Boston stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Boston Properties has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Boston Properties Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Boston Properties Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Boston Properties is -1555.8. The daily returns are distributed with a variance of 5.44 and standard deviation of 2.33. The mean deviation of Boston Properties is currently at 1.83. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.3 | |
β | Beta against NYSE Composite | 2.50 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | -0.07 |
Boston Properties Stock Return Volatility
Boston Properties historical daily return volatility represents how much of Boston Properties stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.3323% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6321% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Boston Properties Volatility
Volatility is a rate at which the price of Boston Properties or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Boston Properties may increase or decrease. In other words, similar to Boston's beta indicator, it measures the risk of Boston Properties and helps estimate the fluctuations that may happen in a short period of time. So if prices of Boston Properties fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 2.2 M | 2 M | |
| Market Cap | 19.2 B | 20.1 B |
Boston Properties' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Boston Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Boston Properties' price varies over time.
3 ways to utilize Boston Properties' volatility to invest better
Higher Boston Properties' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Boston Properties stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Boston Properties stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Boston Properties investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Boston Properties' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Boston Properties' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Boston Properties Investment Opportunity
Boston Properties has a volatility of 2.33 and is 3.7 times more volatile than NYSE Composite. 20 percent of all equities and portfolios are less risky than Boston Properties. You can use Boston Properties to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Boston Properties to be traded at $75.52 in 90 days.Poor diversification
The correlation between Boston Properties and NYA is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Boston Properties and NYA in the same portfolio, assuming nothing else is changed.
Boston Properties Additional Risk Indicators
The analysis of Boston Properties' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Boston Properties' investment and either accepting that risk or mitigating it. Along with some common measures of Boston Properties stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 1.82 | |||
| Coefficient Of Variation | (3,126) | |||
| Standard Deviation | 2.31 | |||
| Variance | 5.32 | |||
| Information Ratio | (0.07) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Boston Properties Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Boston Properties as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Boston Properties' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Boston Properties' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Boston Properties.
When determining whether Boston Properties is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Boston Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Boston Properties Stock. Highlighted below are key reports to facilitate an investment decision about Boston Properties Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Boston Properties. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in interest. To learn how to invest in Boston Stock, please use our How to Invest in Boston Properties guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Complementary Tools for Boston Stock analysis
When running Boston Properties' price analysis, check to measure Boston Properties' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Boston Properties is operating at the current time. Most of Boston Properties' value examination focuses on studying past and present price action to predict the probability of Boston Properties' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Boston Properties' price. Additionally, you may evaluate how the addition of Boston Properties to your portfolios can decrease your overall portfolio volatility.
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |
Is Boston Properties' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Boston Properties. If investors know Boston will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Boston Properties listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.02) | Dividend Share 3.92 | Earnings Share 1.21 | Revenue Per Share 20.631 | Quarterly Revenue Growth 0.348 |
The market value of Boston Properties is measured differently than its book value, which is the value of Boston that is recorded on the company's balance sheet. Investors also form their own opinion of Boston Properties' value that differs from its market value or its book value, called intrinsic value, which is Boston Properties' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Boston Properties' market value can be influenced by many factors that don't directly affect Boston Properties' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Boston Properties' value and its price as these two are different measures arrived at by different means. Investors typically determine if Boston Properties is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Boston Properties' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.