Correlation Between Centuria Industrial and SL Green

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

Diversification Opportunities for Centuria Industrial and SL Green

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Centuria and SLG is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial REIT 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 Centuria Industrial 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 Centuria Industrial REIT 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 Centuria Industrial i.e., Centuria Industrial and SL Green go up and down completely randomly.

Pair Corralation between Centuria Industrial and SL Green

Assuming the 90 days trading horizon Centuria Industrial REIT is expected to generate 0.38 times more return on investment than SL Green. However, Centuria Industrial REIT is 2.66 times less risky than SL Green. It trades about 0.07 of its potential returns per unit of risk. SL Green Realty is currently generating about -0.1 per unit of risk. If you would invest  332.00  in Centuria Industrial REIT on August 30, 2025 and sell it today you would earn a total of  12.00  from holding Centuria Industrial REIT or generate 3.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Centuria Industrial REIT  vs.  SL Green Realty

 Performance 
       Timeline  
Centuria Industrial REIT 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Centuria Industrial REIT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Centuria Industrial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
SL Green Realty 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days SL Green Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Centuria Industrial and SL Green Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Centuria Industrial and SL Green

The main advantage of trading using opposite Centuria Industrial and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial 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 Centuria Industrial REIT 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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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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