Correlation Between SL Green and Mango Capital
Can any of the company-specific risk be diversified away by investing in both SL Green and Mango Capital 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 Mango Capital 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 Mango Capital, you can compare the effects of market volatilities on SL Green and Mango Capital 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 Mango Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Mango Capital.
Diversification Opportunities for SL Green and Mango Capital
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SLG and Mango is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Mango Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Capital 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 Mango Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Capital has no effect on the direction of SL Green i.e., SL Green and Mango Capital go up and down completely randomly.
Pair Corralation between SL Green and Mango Capital
Considering the 90-day investment horizon SL Green Realty is expected to generate 0.69 times more return on investment than Mango Capital. However, SL Green Realty is 1.46 times less risky than Mango Capital. It trades about 0.07 of its potential returns per unit of risk. Mango Capital is currently generating about 0.0 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 | Weak |
| Accuracy | 69.15% |
| Values | Daily Returns |
SL Green Realty vs. Mango Capital
Performance |
| Timeline |
| SL Green Realty |
| Mango Capital |
SL Green and Mango Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and Mango Capital
The main advantage of trading using opposite SL Green and Mango Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Mango Capital 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 Mango Capital will offset losses from the drop in Mango Capital'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 |
| Mango Capital vs. Shopify | Mango Capital vs. Docebo Inc | Mango Capital vs. Unity Software | Mango Capital vs. Fastly Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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