Correlation Between CREO MEDICAL and SLR Investment
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and SLR Investment 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 CREO MEDICAL and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and SLR Investment Corp, you can compare the effects of market volatilities on CREO MEDICAL and SLR Investment 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 CREO MEDICAL with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and SLR Investment.
Diversification Opportunities for CREO MEDICAL and SLR Investment
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between CREO and SLR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp and CREO MEDICAL 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 CREO MEDICAL GRP are associated (or correlated) with SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and SLR Investment go up and down completely randomly.
Pair Corralation between CREO MEDICAL and SLR Investment
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the SLR Investment. In addition to that, CREO MEDICAL is 3.43 times more volatile than SLR Investment Corp. It trades about -0.16 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.11 per unit of volatility. If you would invest 1,586 in SLR Investment Corp on November 6, 2024 and sell it today you would earn a total of 27.00 from holding SLR Investment Corp or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. SLR Investment Corp
Performance |
| Timeline |
| CREO MEDICAL GRP |
| SLR Investment Corp |
CREO MEDICAL and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and SLR Investment
The main advantage of trading using opposite CREO MEDICAL and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| CREO MEDICAL vs. Fuji Media Holdings | CREO MEDICAL vs. PROSIEBENSAT1 MEDIADR4 | CREO MEDICAL vs. Prosiebensat 1 Media | CREO MEDICAL vs. Nexstar Media Group |
| SLR Investment vs. Playtech plc | SLR Investment vs. Boyd Gaming | SLR Investment vs. BioNTech SE | SLR Investment vs. PENN NATL GAMING |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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