Correlation Between SL Green and BW LPG
Can any of the company-specific risk be diversified away by investing in both SL Green and BW LPG 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 BW LPG 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 BW LPG Limited, you can compare the effects of market volatilities on SL Green and BW LPG 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 BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and BW LPG.
Diversification Opportunities for SL Green and BW LPG
Very poor diversification
The 3 months correlation between SLG and BWLLF is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited 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 BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of SL Green i.e., SL Green and BW LPG go up and down completely randomly.
Pair Corralation between SL Green and BW LPG
If you would invest 7,415 in SL Green Realty on September 2, 2024 and sell it today you would earn a total of 404.00 from holding SL Green Realty or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
SL Green Realty vs. BW LPG Limited
Performance |
| Timeline |
| SL Green Realty |
| BW LPG Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SL Green and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and BW LPG
The main advantage of trading using opposite SL Green and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, BW LPG 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 BW LPG will offset losses from the drop in BW LPG'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 |
| BW LPG vs. Hutchison Port Holdings | BW LPG vs. Kawasaki Kisen Kaisha | BW LPG vs. MPC Container Ships | BW LPG vs. Hapag Lloyd Aktiengesellschaft |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets |