Correlation Between SOEDER SPORTFISKE and SLR Investment
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE 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 SOEDER SPORTFISKE and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOEDER SPORTFISKE AB and SLR Investment Corp, you can compare the effects of market volatilities on SOEDER SPORTFISKE 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 SOEDER SPORTFISKE with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and SLR Investment.
Diversification Opportunities for SOEDER SPORTFISKE and SLR Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOEDER and SLR is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB 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 SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB 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 SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and SLR Investment go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and SLR Investment
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 4.43 times more return on investment than SLR Investment. However, SOEDER SPORTFISKE is 4.43 times more volatile than SLR Investment Corp. It trades about 0.3 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.06 per unit of risk. If you would invest 207.00 in SOEDER SPORTFISKE AB on October 30, 2024 and sell it today you would earn a total of 46.00 from holding SOEDER SPORTFISKE AB or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. SLR Investment Corp
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| SLR Investment Corp |
SOEDER SPORTFISKE and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and SLR Investment
The main advantage of trading using opposite SOEDER SPORTFISKE and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE 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.| SOEDER SPORTFISKE vs. Booking Holdings | SOEDER SPORTFISKE vs. Oriental Land Co | SOEDER SPORTFISKE vs. ANTA Sports Products | SOEDER SPORTFISKE vs. Li Ning Company |
| SLR Investment vs. TAL Education Group | SLR Investment vs. STRAYER EDUCATION | SLR Investment vs. Perdoceo Education | SLR Investment vs. SCOTT TECHNOLOGY |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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