Correlation Between SL Green and Mirvac
Can any of the company-specific risk be diversified away by investing in both SL Green and Mirvac 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 SL Green and Mirvac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SL Green Realty and Mirvac Group, you can compare the effects of market volatilities on SL Green and Mirvac 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 SL Green with a short position of Mirvac. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Mirvac.
Diversification Opportunities for SL Green and Mirvac
Excellent diversification
The 3 months correlation between GEI and Mirvac is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Mirvac Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirvac Group and SL Green 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 SL Green Realty are associated (or correlated) with Mirvac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirvac Group has no effect on the direction of SL Green i.e., SL Green and Mirvac go up and down completely randomly.
Pair Corralation between SL Green and Mirvac
Assuming the 90 days horizon SL Green Realty is expected to under-perform the Mirvac. In addition to that, SL Green is 1.17 times more volatile than Mirvac Group. It trades about -0.16 of its total potential returns per unit of risk. Mirvac Group is currently generating about -0.06 per unit of volatility. If you would invest 126.00 in Mirvac Group on September 12, 2024 and sell it today you would lose (3.00) from holding Mirvac Group or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Mirvac Group
Performance |
| Timeline |
| SL Green Realty |
| Mirvac Group |
SL Green and Mirvac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Mirvac
The main advantage of trading using opposite SL Green and Mirvac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Mirvac 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 Mirvac will offset losses from the drop in Mirvac's long position.| SL Green vs. ORIX JREIT INC | SL Green vs. Superior Plus Corp | SL Green vs. SIVERS SEMICONDUCTORS AB | SL Green vs. Norsk Hydro ASA |
| Mirvac vs. ORIX JREIT INC | Mirvac vs. Superior Plus Corp | Mirvac vs. SIVERS SEMICONDUCTORS AB | Mirvac vs. Norsk Hydro ASA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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