Correlation Between SL Green and Berkeley Lights
Can any of the company-specific risk be diversified away by investing in both SL Green and Berkeley Lights 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 Berkeley Lights 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 Berkeley Lights, you can compare the effects of market volatilities on SL Green and Berkeley Lights 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 Berkeley Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Berkeley Lights.
Diversification Opportunities for SL Green and Berkeley Lights
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLG and Berkeley is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Berkeley Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkeley Lights 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 Berkeley Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkeley Lights has no effect on the direction of SL Green i.e., SL Green and Berkeley Lights go up and down completely randomly.
Pair Corralation between SL Green and Berkeley Lights
If you would invest 2,439 in SL Green Realty on September 1, 2024 and sell it today you would earn a total of 5,380 from holding SL Green Realty or generate 220.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.27% |
| Values | Daily Returns |
SL Green Realty vs. Berkeley Lights
Performance |
| Timeline |
| SL Green Realty |
| Berkeley Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SL Green and Berkeley Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Berkeley Lights
The main advantage of trading using opposite SL Green and Berkeley Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Berkeley Lights 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 Berkeley Lights will offset losses from the drop in Berkeley Lights' long position.| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
| Berkeley Lights vs. Mattel Inc | Berkeley Lights vs. Freedom Holding Corp | Berkeley Lights vs. Universal Display | Berkeley Lights vs. SEI Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
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