Correlation Between SL Green and OZ Minerals
Can any of the company-specific risk be diversified away by investing in both SL Green and OZ Minerals 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 OZ Minerals 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 OZ Minerals Limited, you can compare the effects of market volatilities on SL Green and OZ Minerals 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 OZ Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and OZ Minerals.
Diversification Opportunities for SL Green and OZ Minerals
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLG and OZMLF is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of SL Green i.e., SL Green and OZ Minerals go up and down completely randomly.
Pair Corralation between SL Green and OZ Minerals
If you would invest 1,900 in OZ Minerals Limited on October 7, 2024 and sell it today you would earn a total of 0.00 from holding OZ Minerals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SL Green Realty vs. OZ Minerals Limited
Performance |
| Timeline |
| SL Green Realty |
| OZ Minerals Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SL Green and OZ Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and OZ Minerals
The main advantage of trading using opposite SL Green and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.| SL Green vs. Boston Properties | SL Green vs. Douglas Emmett | SL Green vs. Kilroy Realty Corp | SL Green vs. Alexandria Real Estate |
| OZ Minerals vs. Aperture Health | OZ Minerals vs. Acumen Pharmaceuticals | OZ Minerals vs. Interpublic Group of | OZ Minerals vs. Boston Omaha Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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