Correlation Between AMCON Distributing and SL Green
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and SL Green Realty, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and SL Green.
Diversification Opportunities for AMCON Distributing and SL Green
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMCON and SLG is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and SL Green go up and down completely randomly.
Pair Corralation between AMCON Distributing and SL Green
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the SL Green. In addition to that, AMCON Distributing is 1.24 times more volatile than SL Green Realty. It trades about -0.01 of its total potential returns per unit of risk. SL Green Realty is currently generating about 0.13 per unit of volatility. If you would invest 3,261 in SL Green Realty on September 14, 2024 and sell it today you would earn a total of 4,206 from holding SL Green Realty or generate 128.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
AMCON Distributing vs. SL Green Realty
Performance |
| Timeline |
| AMCON Distributing |
| SL Green Realty |
AMCON Distributing and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and SL Green
The main advantage of trading using opposite AMCON Distributing and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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