Correlation Between Aris Mining and SL Green

Can any of the company-specific risk be diversified away by investing in both Aris Mining 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 Aris Mining and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aris Mining and SL Green Realty, you can compare the effects of market volatilities on Aris Mining 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 Aris Mining with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Mining and SL Green.

Diversification Opportunities for Aris Mining and SL Green

0.61

Correlation Coefficient

Aris Mining  SL Green

Poor diversification

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

Pair Corralation between Aris Mining and SL Green

Given the investment horizon of 90 days Aris Mining is expected to generate 1.43 times more return on investment than SL Green. However, Aris Mining is 1.43 times more volatile than SL Green Realty. It trades about 0.13 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  349.00  in Aris Mining on October 23, 2024 and sell it today you would earn a total of  21.50  from holding Aris Mining or generate 6.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Aris Mining  vs.  SL Green Realty

Aris Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aris Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SL Green Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SL Green Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Aris Mining and SL Green

The main advantage of trading using opposite Aris Mining and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris Mining 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.

The idea behind Aris Mining 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.