Correlation Between SL Green and Boot Barn
Can any of the company-specific risk be diversified away by investing in both SL Green and Boot Barn 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 Boot Barn 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 Boot Barn Holdings, you can compare the effects of market volatilities on SL Green and Boot Barn 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 Boot Barn. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Boot Barn.
Diversification Opportunities for SL Green and Boot Barn
Very good diversification
The 3 months correlation between SLG and Boot is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Boot Barn Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boot Barn Holdings 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 Boot Barn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boot Barn Holdings has no effect on the direction of SL Green i.e., SL Green and Boot Barn go up and down completely randomly.
Pair Corralation between SL Green and Boot Barn
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.65 times more return on investment than Boot Barn. However, SL Green Realty is 1.53 times less risky than Boot Barn. It trades about 0.15 of its potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.08 per unit of risk. If you would invest 5,119 in SL Green Realty on September 3, 2024 and sell it today you would earn a total of 2,700 from holding SL Green Realty or generate 52.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Boot Barn Holdings
Performance |
| Timeline |
| SL Green Realty |
| Boot Barn Holdings |
SL Green and Boot Barn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Boot Barn
The main advantage of trading using opposite SL Green and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Boot Barn 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 Boot Barn will offset losses from the drop in Boot Barn'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 |
| Boot Barn vs. Ross Stores | Boot Barn vs. Childrens Place | Boot Barn vs. Buckle Inc | Boot Barn vs. Guess 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |