Correlation Between SL Green and Delta Oil
Can any of the company-specific risk be diversified away by investing in both SL Green and Delta Oil 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 Delta Oil 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 Delta Oil Gas, you can compare the effects of market volatilities on SL Green and Delta Oil 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 Delta Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Delta Oil.
Diversification Opportunities for SL Green and Delta Oil
Very good diversification
The 3 months correlation between SLG and Delta is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Delta Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Oil Gas 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 Delta Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Oil Gas has no effect on the direction of SL Green i.e., SL Green and Delta Oil go up and down completely randomly.
Pair Corralation between SL Green and Delta Oil
Considering the 90-day investment horizon SL Green Realty is expected to under-perform the Delta Oil. But the stock apears to be less risky and, when comparing its historical volatility, SL Green Realty is 119.04 times less risky than Delta Oil. The stock trades about -0.23 of its potential returns per unit of risk. The Delta Oil Gas is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Delta Oil Gas on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Delta Oil Gas or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. Delta Oil Gas
Performance |
| Timeline |
| SL Green Realty |
| Delta Oil Gas |
SL Green and Delta Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Delta Oil
The main advantage of trading using opposite SL Green and Delta Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Delta Oil 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 Delta Oil will offset losses from the drop in Delta Oil'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 |
| Delta Oil vs. Lion One Metals | Delta Oil vs. EvoAir Holdings | Delta Oil vs. Summit Materials | Delta Oil vs. Alaska Air Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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