Correlation Between Top KingWin and SL Green
Can any of the company-specific risk be diversified away by investing in both Top KingWin and SL Green 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 Top KingWin and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Top KingWin Ltd and SL Green Realty, you can compare the effects of market volatilities on Top KingWin and SL Green 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 Top KingWin with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Top KingWin and SL Green.
Diversification Opportunities for Top KingWin and SL Green
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Top and SLG is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Top KingWin Ltd and SL Green Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Green Realty and Top KingWin 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 Top KingWin Ltd are associated (or correlated) with SL Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Green Realty has no effect on the direction of Top KingWin i.e., Top KingWin and SL Green go up and down completely randomly.
Pair Corralation between Top KingWin and SL Green
Given the investment horizon of 90 days Top KingWin Ltd is expected to under-perform the SL Green. In addition to that, Top KingWin is 2.8 times more volatile than SL Green Realty. It trades about -0.04 of its total potential returns per unit of risk. SL Green Realty is currently generating about 0.11 per unit of volatility. If you would invest 2,434 in SL Green Realty on August 31, 2024 and sell it today you would earn a total of 5,385 from holding SL Green Realty or generate 221.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.25% |
| Values | Daily Returns |
Top KingWin Ltd vs. SL Green Realty
Performance |
| Timeline |
| Top KingWin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| SL Green Realty |
Top KingWin and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Top KingWin and SL Green
The main advantage of trading using opposite Top KingWin and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Top KingWin position performs unexpectedly, SL Green 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 SL Green will offset losses from the drop in SL Green's long position.| Top KingWin vs. Neogen | Top KingWin vs. RadNet Inc | Top KingWin vs. Teleflex Incorporated | Top KingWin vs. JBG SMITH Properties |
| SL Green vs. Boston Properties | SL Green vs. Alexandria Real Estate | SL Green vs. Hudson Pacific Properties | SL Green vs. Office Properties Income |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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