Correlation Between SL Green and Artis REIT
Can any of the company-specific risk be diversified away by investing in both SL Green and Artis REIT 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 Artis REIT 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 Artis REIT, you can compare the effects of market volatilities on SL Green and Artis REIT 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 Artis REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Artis REIT.
Diversification Opportunities for SL Green and Artis REIT
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SLG and Artis is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Artis REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artis REIT 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 Artis REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artis REIT has no effect on the direction of SL Green i.e., SL Green and Artis REIT go up and down completely randomly.
Pair Corralation between SL Green and Artis REIT
Considering the 90-day investment horizon SL Green Realty is expected to under-perform the Artis REIT. In addition to that, SL Green is 1.49 times more volatile than Artis REIT. It trades about -0.08 of its total potential returns per unit of risk. Artis REIT is currently generating about 0.25 per unit of volatility. If you would invest 509.00 in Artis REIT on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Artis REIT or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SL Green Realty vs. Artis REIT
Performance |
| Timeline |
| SL Green Realty |
| Artis REIT |
SL Green and Artis REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Artis REIT
The main advantage of trading using opposite SL Green and Artis REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Artis REIT 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 Artis REIT will offset losses from the drop in Artis REIT's long position.| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
| Artis REIT vs. Armada Hoffler Properties | Artis REIT vs. Ascott Residence Trust | Artis REIT vs. Armada Hflr Pr | Artis REIT vs. Modiv Inc |
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 Correlations module to find global opportunities by holding instruments from different markets.
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