Correlation Between Distoken Acquisition and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition 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 Distoken Acquisition and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and SLR Investment Corp, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and SLR Investment.
Diversification Opportunities for Distoken Acquisition and SLR Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Distoken and SLR is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition i.e., Distoken Acquisition and SLR Investment go up and down completely randomly.
Pair Corralation between Distoken Acquisition and SLR Investment
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 2.53 times less return on investment than SLR Investment. But when comparing it to its historical volatility, Distoken Acquisition is 2.34 times less risky than SLR Investment. It trades about 0.23 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,557 in SLR Investment Corp on August 28, 2024 and sell it today you would earn a total of 98.00 from holding SLR Investment Corp or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Distoken Acquisition vs. SLR Investment Corp
Performance |
| Timeline |
| Distoken Acquisition |
| SLR Investment Corp |
Distoken Acquisition and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and SLR Investment
The main advantage of trading using opposite Distoken Acquisition and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.| Distoken Acquisition vs. Aurora Innovation | Distoken Acquisition vs. HUMANA INC | Distoken Acquisition vs. Aquagold International | Distoken Acquisition vs. Barloworld Ltd ADR |
| SLR Investment vs. Horizon Technology Finance | SLR Investment vs. WhiteHorse Finance | SLR Investment vs. Gladstone Capital | SLR Investment vs. PennantPark Floating Rate |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |