Correlation Between SL Green and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both SL Green and IShares MSCI 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 IShares MSCI 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 iShares MSCI, you can compare the effects of market volatilities on SL Green and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and IShares MSCI.
Diversification Opportunities for SL Green and IShares MSCI
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLG and IShares is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and iShares MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI has no effect on the direction of SL Green i.e., SL Green and IShares MSCI go up and down completely randomly.
Pair Corralation between SL Green and IShares MSCI
Considering the 90-day investment horizon SL Green Realty is expected to generate 4.57 times more return on investment than IShares MSCI. However, SL Green is 4.57 times more volatile than iShares MSCI. It trades about 0.09 of its potential returns per unit of risk. iShares MSCI is currently generating about 0.09 per unit of risk. If you would invest 4,336 in SL Green Realty on October 29, 2024 and sell it today you would earn a total of 2,263 from holding SL Green Realty or generate 52.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SL Green Realty vs. iShares MSCI
Performance |
| Timeline |
| SL Green Realty |
| iShares MSCI |
SL Green and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and IShares MSCI
The main advantage of trading using opposite SL Green and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI'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 |
| IShares MSCI vs. LATAM Airlines Group | IShares MSCI vs. East West Bancorp | IShares MSCI vs. United Airlines Holdings | IShares MSCI vs. Sun Country Airlines |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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