Correlation Between Hannon Armstrong and SL Green
Can any of the company-specific risk be diversified away by investing in both Hannon Armstrong 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 Hannon Armstrong and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannon Armstrong Sustainable and SL Green Realty, you can compare the effects of market volatilities on Hannon Armstrong 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 Hannon Armstrong with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannon Armstrong and SL Green.
Diversification Opportunities for Hannon Armstrong and SL Green
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hannon and SLG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hannon Armstrong Sustainable 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 Hannon Armstrong 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 Hannon Armstrong Sustainable 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 Hannon Armstrong i.e., Hannon Armstrong and SL Green go up and down completely randomly.
Pair Corralation between Hannon Armstrong and SL Green
Given the investment horizon of 90 days Hannon Armstrong Sustainable is expected to generate 1.2 times more return on investment than SL Green. However, Hannon Armstrong is 1.2 times more volatile than SL Green Realty. It trades about 0.11 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 2,721 in Hannon Armstrong Sustainable on September 18, 2024 and sell it today you would earn a total of 116.50 from holding Hannon Armstrong Sustainable or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannon Armstrong Sustainable vs. SL Green Realty
Performance |
| Timeline |
| Hannon Armstrong Sus |
| SL Green Realty |
Hannon Armstrong and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannon Armstrong and SL Green
The main advantage of trading using opposite Hannon Armstrong and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannon Armstrong 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.| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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