Correlation Between CHRYSALIS INVESTMENTS and SLR Investment
Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and SLR Investment Corp, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and SLR Investment.
Diversification Opportunities for CHRYSALIS INVESTMENTS and SLR Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CHRYSALIS and SLR is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD 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 CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD 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 CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and SLR Investment go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and SLR Investment
Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to under-perform the SLR Investment. In addition to that, CHRYSALIS INVESTMENTS is 1.75 times more volatile than SLR Investment Corp. It trades about -0.08 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.19 per unit of volatility. If you would invest 1,526 in SLR Investment Corp on October 19, 2024 and sell it today you would earn a total of 63.00 from holding SLR Investment Corp or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. SLR Investment Corp
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| SLR Investment Corp |
CHRYSALIS INVESTMENTS and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and SLR Investment
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS 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.| CHRYSALIS INVESTMENTS vs. Carnegie Clean Energy | CHRYSALIS INVESTMENTS vs. KINGBOARD CHEMICAL | CHRYSALIS INVESTMENTS vs. PLANT VEDA FOODS | CHRYSALIS INVESTMENTS vs. Soken Chemical Engineering |
| SLR Investment vs. CHRYSALIS INVESTMENTS LTD | SLR Investment vs. alstria office REIT AG | SLR Investment vs. Chuangs China Investments | SLR Investment vs. AGNC 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |