Correlation Between SL Green and Amgen
Can any of the company-specific risk be diversified away by investing in both SL Green and Amgen 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 SL Green and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SL Green Realty and Amgen Inc, you can compare the effects of market volatilities on SL Green and Amgen 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 SL Green with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Amgen.
Diversification Opportunities for SL Green and Amgen
Excellent diversification
The 3 months correlation between SLG and Amgen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and SL Green 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 SL Green Realty are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of SL Green i.e., SL Green and Amgen go up and down completely randomly.
Pair Corralation between SL Green and Amgen
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.78 times more return on investment than Amgen. However, SL Green Realty is 1.27 times less risky than Amgen. It trades about 0.05 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.21 per unit of risk. If you would invest 7,758 in SL Green Realty on August 31, 2024 and sell it today you would earn a total of 127.00 from holding SL Green Realty or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Amgen Inc
Performance |
| Timeline |
| SL Green Realty |
| Amgen Inc |
SL Green and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Amgen
The main advantage of trading using opposite SL Green and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| SL Green vs. Boston Properties | SL Green vs. Alexandria Real Estate | SL Green vs. Hudson Pacific Properties | SL Green vs. Office Properties Income |
| Amgen vs. Pfizer Inc | Amgen vs. RLJ Lodging Trust | Amgen vs. Aquagold International | Amgen vs. Stepstone Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |