Correlation Between SL Green and Mid Atlantic
Can any of the company-specific risk be diversified away by investing in both SL Green and Mid Atlantic 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 Mid Atlantic 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 Mid Atlantic Home Health, you can compare the effects of market volatilities on SL Green and Mid Atlantic 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 Mid Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Mid Atlantic.
Diversification Opportunities for SL Green and Mid Atlantic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SLG and Mid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Mid Atlantic Home Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Atlantic Home 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 Mid Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Atlantic Home has no effect on the direction of SL Green i.e., SL Green and Mid Atlantic go up and down completely randomly.
Pair Corralation between SL Green and Mid Atlantic
If you would invest 3,261 in SL Green Realty on September 14, 2024 and sell it today you would earn a total of 4,206 from holding SL Green Realty or generate 128.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
SL Green Realty vs. Mid Atlantic Home Health
Performance |
| Timeline |
| SL Green Realty |
| Mid Atlantic Home |
SL Green and Mid Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Mid Atlantic
The main advantage of trading using opposite SL Green and Mid Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Mid Atlantic 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 Mid Atlantic will offset losses from the drop in Mid Atlantic'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 |
| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic vs. Concord Medical Services |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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