Correlation Between SL Green and BingEx
Can any of the company-specific risk be diversified away by investing in both SL Green and BingEx 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 BingEx 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 BingEx, you can compare the effects of market volatilities on SL Green and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and BingEx.
Diversification Opportunities for SL Green and BingEx
Very weak diversification
The 3 months correlation between SLG and BingEx is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of SL Green i.e., SL Green and BingEx go up and down completely randomly.
Pair Corralation between SL Green and BingEx
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.33 times more return on investment than BingEx. However, SL Green Realty is 3.05 times less risky than BingEx. It trades about -0.03 of its potential returns per unit of risk. BingEx is currently generating about -0.13 per unit of risk. If you would invest 7,055 in SL Green Realty on October 24, 2024 and sell it today you would lose (472.00) from holding SL Green Realty or give up 6.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.36% |
| Values | Daily Returns |
SL Green Realty vs. BingEx
Performance |
| Timeline |
| SL Green Realty |
| BingEx |
SL Green and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and BingEx
The main advantage of trading using opposite SL Green and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx'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 |
| BingEx vs. Kingdee International Software | BingEx vs. SL Green Realty | BingEx vs. Autohome | BingEx vs. Q2 Holdings |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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