Correlation Between Calmare Therapeutics and SL Green
Can any of the company-specific risk be diversified away by investing in both Calmare Therapeutics 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 Calmare Therapeutics and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calmare Therapeutics and SL Green Realty, you can compare the effects of market volatilities on Calmare Therapeutics 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 Calmare Therapeutics with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calmare Therapeutics and SL Green.
Diversification Opportunities for Calmare Therapeutics and SL Green
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calmare and SLG is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics i.e., Calmare Therapeutics and SL Green go up and down completely randomly.
Pair Corralation between Calmare Therapeutics and SL Green
If you would invest 0.01 in Calmare Therapeutics on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Calmare Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Calmare Therapeutics vs. SL Green Realty
Performance |
| Timeline |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SL Green Realty |
Calmare Therapeutics and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calmare Therapeutics and SL Green
The main advantage of trading using opposite Calmare Therapeutics and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calmare Therapeutics 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.| Calmare Therapeutics vs. SL Green Realty | Calmare Therapeutics vs. Bassett Furniture Industries | Calmare Therapeutics vs. Lion One Metals | Calmare Therapeutics vs. Sandstorm Gold Ltd |
| SL Green vs. Realty Income | SL Green vs. Park Hotels Resorts | SL Green vs. Power REIT | SL Green vs. Urban Edge 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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