Correlation Between Zebra Technologies and SL Green
Can any of the company-specific risk be diversified away by investing in both Zebra Technologies 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 Zebra Technologies and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and SL Green Realty, you can compare the effects of market volatilities on Zebra Technologies 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 Zebra Technologies with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and SL Green.
Diversification Opportunities for Zebra Technologies and SL Green
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zebra and S1LG34 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies 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 Zebra Technologies i.e., Zebra Technologies and SL Green go up and down completely randomly.
Pair Corralation between Zebra Technologies and SL Green
Assuming the 90 days trading horizon Zebra Technologies is expected to generate 0.51 times more return on investment than SL Green. However, Zebra Technologies is 1.96 times less risky than SL Green. It trades about -0.06 of its potential returns per unit of risk. SL Green Realty is currently generating about -0.05 per unit of risk. If you would invest 8,200 in Zebra Technologies on October 24, 2024 and sell it today you would lose (125.00) from holding Zebra Technologies or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Zebra Technologies vs. SL Green Realty
Performance |
| Timeline |
| Zebra Technologies |
| SL Green Realty |
Zebra Technologies and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zebra Technologies and SL Green
The main advantage of trading using opposite Zebra Technologies and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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.| Zebra Technologies vs. Academy Sports and | Zebra Technologies vs. UnitedHealth Group Incorporated | Zebra Technologies vs. Global X Funds | Zebra Technologies vs. Hospital Mater Dei |
| SL Green vs. Multilaser Industrial SA | SL Green vs. Cardinal Health, | SL Green vs. United Airlines Holdings | SL Green vs. Molson Coors Beverage |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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