Correlation Between Public Storage and SL Green

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Can any of the company-specific risk be diversified away by investing in both Public Storage 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 Public Storage and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and SL Green Realty, you can compare the effects of market volatilities on Public Storage 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 Public Storage with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and SL Green.

Diversification Opportunities for Public Storage and SL Green

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Public and SL Green is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage 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 Public Storage 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 Public Storage 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 Public Storage i.e., Public Storage and SL Green go up and down completely randomly.

Pair Corralation between Public Storage and SL Green

Considering the 90-day investment horizon Public Storage is expected to generate 0.51 times more return on investment than SL Green. However, Public Storage is 1.97 times less risky than SL Green. It trades about 0.04 of its potential returns per unit of risk. SL Green Realty is currently generating about 0.0 per unit of risk. If you would invest  22,675  in Public Storage on July 2, 2022 and sell it today you would earn a total of  6,533  from holding Public Storage or generate 28.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Public Storage  vs.  SL Green Realty

 Performance (%) 
       Timeline  
Public Storage 
Public Performance
0 of 100
Over the last 90 days Public Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Public Price Channel

SL Green Realty 
SL Green Performance
0 of 100
Over the last 90 days SL Green Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SL Green Price Channel

Public Storage and SL Green Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Public Storage and SL Green

The main advantage of trading using opposite Public Storage and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage 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.
Public Storage vs. JP Morgan Chase
The idea behind Public Storage and SL Green Realty 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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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 Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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