Correlation Between Chatham Lodging and SL Green
Can any of the company-specific risk be diversified away by investing in both Chatham Lodging 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 Chatham Lodging and SL Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chatham Lodging Trust and SL Green Realty, you can compare the effects of market volatilities on Chatham Lodging 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 Chatham Lodging with a short position of SL Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chatham Lodging and SL Green.
Diversification Opportunities for Chatham Lodging and SL Green
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chatham and SLG is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chatham Lodging Trust 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 Chatham Lodging 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 Chatham Lodging Trust 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 Chatham Lodging i.e., Chatham Lodging and SL Green go up and down completely randomly.
Pair Corralation between Chatham Lodging and SL Green
Assuming the 90 days trading horizon Chatham Lodging Trust is expected to generate 0.3 times more return on investment than SL Green. However, Chatham Lodging Trust is 3.28 times less risky than SL Green. It trades about -0.08 of its potential returns per unit of risk. SL Green Realty is currently generating about -0.16 per unit of risk. If you would invest 2,067 in Chatham Lodging Trust on September 4, 2025 and sell it today you would lose (74.00) from holding Chatham Lodging Trust or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Chatham Lodging Trust vs. SL Green Realty
Performance |
| Timeline |
| Chatham Lodging Trust |
| SL Green Realty |
Chatham Lodging and SL Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chatham Lodging and SL Green
The main advantage of trading using opposite Chatham Lodging and SL Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chatham Lodging 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.| Chatham Lodging vs. Natcore Technology | Chatham Lodging vs. The Peoples Insurance | Chatham Lodging vs. Country Wide Insurance | Chatham Lodging vs. American Coastal Insurance |
| SL Green vs. T Mobile US, 5500 | SL Green vs. Forum Mobile | SL Green vs. Foreign Trade Bank | SL Green vs. On4 Communications |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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