Correlation Between WESANA HEALTH and SLR Investment
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and SLR Investment Corp, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and SLR Investment.
Diversification Opportunities for WESANA HEALTH and SLR Investment
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WESANA and SLR is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD 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 WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and SLR Investment go up and down completely randomly.
Pair Corralation between WESANA HEALTH and SLR Investment
If you would invest 1,554 in SLR Investment Corp on October 14, 2024 and sell it today you would earn a total of 20.00 from holding SLR Investment Corp or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. SLR Investment Corp
Performance |
| Timeline |
| WESANA HEALTH HOLD |
| SLR Investment Corp |
WESANA HEALTH and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESANA HEALTH and SLR Investment
The main advantage of trading using opposite WESANA HEALTH and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.| WESANA HEALTH vs. Superior Plus Corp | WESANA HEALTH vs. NMI Holdings | WESANA HEALTH vs. SIVERS SEMICONDUCTORS AB | WESANA HEALTH vs. Talanx AG |
| SLR Investment vs. WESANA HEALTH HOLD | SLR Investment vs. Hisense Home Appliances | SLR Investment vs. Siemens Healthineers AG | SLR Investment vs. RCI Hospitality Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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