Correlation Between SL Green and Jpmorgan International

Can any of the company-specific risk be diversified away by investing in both SL Green and Jpmorgan International 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 Jpmorgan International 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 Jpmorgan International Research, you can compare the effects of market volatilities on SL Green and Jpmorgan International 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 Jpmorgan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SL Green and Jpmorgan International.

Diversification Opportunities for SL Green and Jpmorgan International

0.0

Correlation Coefficient

SL Green  Jpmorgan International

Pay attention - limited upside

The 3 months correlation between SLG and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SL Green Realty and Jpmorgan International Researc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan International 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 Jpmorgan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan International has no effect on the direction of SL Green i.e., SL Green and Jpmorgan International go up and down completely randomly.

Pair Corralation between SL Green and Jpmorgan International

If you would invest  4,757  in SL Green Realty on March 4, 2024 and sell it today you would earn a total of  540.00  from holding SL Green Realty or generate 11.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

SL Green Realty  vs.  Jpmorgan International Researc

SL Green Realty

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SL Green Realty are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, SL Green reported solid returns over the last few months and may actually be approaching a breakup point.

Jpmorgan International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jpmorgan International Research has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SL Green and Jpmorgan International

The main advantage of trading using opposite SL Green and Jpmorgan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SL Green position performs unexpectedly, Jpmorgan International 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 Jpmorgan International will offset losses from the drop in Jpmorgan International's long position.

The idea behind SL Green Realty and Jpmorgan International Research pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.