Correlation Between Mid Atlantic and SL Green
Can any of the company-specific risk be diversified away by investing in both Mid Atlantic 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 Mid Atlantic and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Atlantic Home Health and SL Green Realty, you can compare the effects of market volatilities on Mid Atlantic 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 Mid Atlantic with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Atlantic and SL Green.
Diversification Opportunities for Mid Atlantic and SL Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and SLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Atlantic Home Health 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 Mid Atlantic 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 Mid Atlantic Home Health 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 Mid Atlantic i.e., Mid Atlantic and SL Green go up and down completely randomly.
Pair Corralation between Mid Atlantic and SL Green
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 | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Mid Atlantic Home Health vs. SL Green Realty
Performance |
| Timeline |
| Mid Atlantic Home |
| SL Green Realty |
Mid Atlantic and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Atlantic and SL Green
The main advantage of trading using opposite Mid Atlantic and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Atlantic 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.| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic vs. Concord Medical Services |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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