Correlation Between SL Green and Crombie Real
Can any of the company-specific risk be diversified away by investing in both SL Green and Crombie Real 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 Crombie Real 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 Crombie Real Estate, you can compare the effects of market volatilities on SL Green and Crombie Real 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 Crombie Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Crombie Real.
Diversification Opportunities for SL Green and Crombie Real
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLG and Crombie is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Crombie Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crombie Real Estate 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 Crombie Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crombie Real Estate has no effect on the direction of SL Green i.e., SL Green and Crombie Real go up and down completely randomly.
Pair Corralation between SL Green and Crombie Real
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.81 times more return on investment than Crombie Real. However, SL Green Realty is 1.23 times less risky than Crombie Real. It trades about 0.07 of its potential returns per unit of risk. Crombie Real Estate is currently generating about 0.01 per unit of risk. If you would invest 3,070 in SL Green Realty on September 2, 2024 and sell it today you would earn a total of 4,749 from holding SL Green Realty or generate 154.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.91% |
| Values | Daily Returns |
SL Green Realty vs. Crombie Real Estate
Performance |
| Timeline |
| SL Green Realty |
| Crombie Real Estate |
SL Green and Crombie Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Crombie Real
The main advantage of trading using opposite SL Green and Crombie Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Crombie Real 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 Crombie Real will offset losses from the drop in Crombie Real'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 |
| Crombie Real vs. Modiv Inc | Crombie Real vs. Presidio Property Trust | Crombie Real vs. Medalist Diversified Reit | Crombie Real vs. Gladstone Commercial |
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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