Correlation Between SL Green and China Eastern
Can any of the company-specific risk be diversified away by investing in both SL Green and China Eastern 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 China Eastern 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 China Eastern Airlines, you can compare the effects of market volatilities on SL Green and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and China Eastern.
Diversification Opportunities for SL Green and China Eastern
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLG and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of SL Green i.e., SL Green and China Eastern go up and down completely randomly.
Pair Corralation between SL Green and China Eastern
If you would invest 7,758 in SL Green Realty on August 31, 2024 and sell it today you would earn a total of 61.00 from holding SL Green Realty or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
SL Green Realty vs. China Eastern Airlines
Performance |
| Timeline |
| SL Green Realty |
| China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SL Green and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and China Eastern
The main advantage of trading using opposite SL Green and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern'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 |
| China Eastern vs. Chester Mining | China Eastern vs. Ross Stores | China Eastern vs. Jacobs Solutions | China Eastern vs. Silo Pharma |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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