Correlation Between Corporate Office and SL Green
Can any of the company-specific risk be diversified away by investing in both Corporate Office 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 Corporate Office and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and SL Green Realty, you can compare the effects of market volatilities on Corporate Office 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 Corporate Office with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and SL Green.
Diversification Opportunities for Corporate Office and SL Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Corporate and SLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office 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 Corporate Office 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 Corporate Office 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 Corporate Office i.e., Corporate Office and SL Green go up and down completely randomly.
Pair Corralation between Corporate Office and SL Green
If you would invest 4,220 in SL Green Realty on November 9, 2024 and sell it today you would earn a total of 2,457 from holding SL Green Realty or generate 58.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Corporate Office Properties vs. SL Green Realty
Performance |
| Timeline |
| Corporate Office Pro |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SL Green Realty |
Corporate Office and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and SL Green
The main advantage of trading using opposite Corporate Office and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office 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.| Corporate Office vs. Highwoods Properties | Corporate Office vs. Piedmont Office Realty | Corporate Office vs. Douglas Emmett | Corporate Office vs. Kilroy Realty Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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