Correlation Between Gaming and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Gaming 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 Gaming and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and SLR Investment Corp, you can compare the effects of market volatilities on Gaming 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 Gaming with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and SLR Investment.
Diversification Opportunities for Gaming and SLR Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaming and SLR is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure 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 Gaming 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 Gaming and Leisure 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 Gaming i.e., Gaming and SLR Investment go up and down completely randomly.
Pair Corralation between Gaming and SLR Investment
Assuming the 90 days horizon Gaming and Leisure is expected to under-perform the SLR Investment. In addition to that, Gaming is 2.32 times more volatile than SLR Investment Corp. It trades about -0.01 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,586 in SLR Investment Corp on November 4, 2024 and sell it today you would earn a total of 9.00 from holding SLR Investment Corp or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gaming and Leisure vs. SLR Investment Corp
Performance |
| Timeline |
| Gaming and Leisure |
| SLR Investment Corp |
Gaming and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and SLR Investment
The main advantage of trading using opposite Gaming and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming 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.| Gaming vs. JSC Halyk bank | Gaming vs. Highlight Communications AG | Gaming vs. Ribbon Communications | Gaming vs. Verizon Communications |
| SLR Investment vs. AUST AGRICULTURAL | SLR Investment vs. New Residential Investment | SLR Investment vs. Australian Agricultural | SLR Investment vs. TITAN MACHINERY |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |