Correlation Between Live Ventures and SL Green
Can any of the company-specific risk be diversified away by investing in both Live Ventures 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 Live Ventures and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Ventures and SL Green Realty, you can compare the effects of market volatilities on Live Ventures 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 Live Ventures with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Ventures and SL Green.
Diversification Opportunities for Live Ventures and SL Green
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and SLG is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Live Ventures 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 Live Ventures 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 Live Ventures 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 Live Ventures i.e., Live Ventures and SL Green go up and down completely randomly.
Pair Corralation between Live Ventures and SL Green
Given the investment horizon of 90 days Live Ventures is expected to under-perform the SL Green. But the stock apears to be less risky and, when comparing its historical volatility, Live Ventures is 1.03 times less risky than SL Green. The stock trades about -0.08 of its potential returns per unit of risk. The SL Green Realty is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,026 in SL Green Realty on August 27, 2024 and sell it today you would earn a total of 5,937 from holding SL Green Realty or generate 293.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Ventures vs. SL Green Realty
Performance |
| Timeline |
| Live Ventures |
| SL Green Realty |
Live Ventures and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Ventures and SL Green
The main advantage of trading using opposite Live Ventures and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Ventures 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.| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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