Correlation Between Hudson Pacific and SL Green
Can any of the company-specific risk be diversified away by investing in both Hudson Pacific 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 Hudson Pacific and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Pacific Properties and SL Green Realty, you can compare the effects of market volatilities on Hudson Pacific 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 Hudson Pacific with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Pacific and SL Green.
Diversification Opportunities for Hudson Pacific and SL Green
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hudson and SLG-PI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Pacific Properties 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 Hudson Pacific 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 Hudson Pacific Properties 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 Hudson Pacific i.e., Hudson Pacific and SL Green go up and down completely randomly.
Pair Corralation between Hudson Pacific and SL Green
Assuming the 90 days trading horizon Hudson Pacific Properties is expected to generate 2.37 times more return on investment than SL Green. However, Hudson Pacific is 2.37 times more volatile than SL Green Realty. It trades about 0.01 of its potential returns per unit of risk. SL Green Realty is currently generating about -0.04 per unit of risk. If you would invest 1,395 in Hudson Pacific Properties on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Hudson Pacific Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Pacific Properties vs. SL Green Realty
Performance |
| Timeline |
| Hudson Pacific Properties |
| SL Green Realty |
Hudson Pacific and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Pacific and SL Green
The main advantage of trading using opposite Hudson Pacific and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Pacific 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.| Hudson Pacific vs. Vornado Realty Trust | Hudson Pacific vs. Vornado Realty Trust | Hudson Pacific vs. SL Green Realty | Hudson Pacific vs. Vornado Realty Trust |
| SL Green vs. Vornado Realty Trust | SL Green vs. Vornado Realty Trust | SL Green vs. City Office REIT | SL Green vs. Vornado 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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