Correlation Between SL Green and WELLS
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By analyzing existing cross correlation between SL Green Realty and WELLS FARGO NEW, you can compare the effects of market volatilities on SL Green and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and WELLS.
Diversification Opportunities for SL Green and WELLS
Very good diversification
The 3 months correlation between SLG and WELLS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO NEW 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of SL Green i.e., SL Green and WELLS go up and down completely randomly.
Pair Corralation between SL Green and WELLS
Considering the 90-day investment horizon SL Green Realty is expected to generate 2.75 times more return on investment than WELLS. However, SL Green is 2.75 times more volatile than WELLS FARGO NEW. It trades about 0.06 of its potential returns per unit of risk. WELLS FARGO NEW is currently generating about -0.14 per unit of risk. If you would invest 7,654 in SL Green Realty on August 29, 2024 and sell it today you would earn a total of 163.00 from holding SL Green Realty or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SL Green Realty vs. WELLS FARGO NEW
Performance |
| Timeline |
| SL Green Realty |
| WELLS FARGO NEW |
SL Green and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SL Green and WELLS
The main advantage of trading using opposite SL Green and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS'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 |
| WELLS vs. Oasis Hotel Resort | WELLS vs. Dave Busters Entertainment | WELLS vs. Zhihu Inc ADR | WELLS vs. Sweetgreen |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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