Correlation Between Henry Schein and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Henry Schein 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 Henry Schein and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henry Schein and SLR Investment Corp, you can compare the effects of market volatilities on Henry Schein 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 Henry Schein with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henry Schein and SLR Investment.
Diversification Opportunities for Henry Schein and SLR Investment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henry and SLR is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Henry Schein 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 Henry Schein 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 Henry Schein 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 Henry Schein i.e., Henry Schein and SLR Investment go up and down completely randomly.
Pair Corralation between Henry Schein and SLR Investment
Assuming the 90 days horizon Henry Schein is expected to generate 3.6 times less return on investment than SLR Investment. In addition to that, Henry Schein is 1.4 times more volatile than SLR Investment Corp. It trades about 0.02 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,142 in SLR Investment Corp on September 1, 2024 and sell it today you would earn a total of 423.00 from holding SLR Investment Corp or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Henry Schein vs. SLR Investment Corp
Performance |
| Timeline |
| Henry Schein |
| SLR Investment Corp |
Henry Schein and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henry Schein and SLR Investment
The main advantage of trading using opposite Henry Schein and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henry Schein 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.| Henry Schein vs. Cardinal Health | Henry Schein vs. Shanghai Pharmaceuticals Holding | Henry Schein vs. Sinopharm Group Co | Henry Schein vs. SINOPHARM GROUP 15ON |
| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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