Correlation Between Agree Realty and SL Green
Can any of the company-specific risk be diversified away by investing in both Agree Realty and SL Green 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 Agree Realty and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and SL Green Realty, you can compare the effects of market volatilities on Agree Realty and SL Green 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 Agree Realty with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and SL Green.
Diversification Opportunities for Agree Realty and SL Green
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agree and SLG is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty and Agree Realty 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 Agree Realty are associated (or correlated) with SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of Agree Realty i.e., Agree Realty and SL Green go up and down completely randomly.
Pair Corralation between Agree Realty and SL Green
Assuming the 90 days trading horizon Agree Realty is expected to generate 0.53 times more return on investment than SL Green. However, Agree Realty is 1.88 times less risky than SL Green. It trades about 0.03 of its potential returns per unit of risk. SL Green Realty is currently generating about -0.07 per unit of risk. If you would invest 1,901 in Agree Realty on September 18, 2024 and sell it today you would earn a total of 9.00 from holding Agree Realty or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Agree Realty vs. SL Green Realty
Performance |
| Timeline |
| Agree Realty |
| SL Green Realty |
Agree Realty and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and SL Green
The main advantage of trading using opposite Agree Realty and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Vornado Realty Trust | Agree Realty vs. Rexford Industrial Realty | Agree Realty vs. Digital Realty Trust |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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