Correlation Between INTERSHOP Communications and SLR Investment
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and SLR Investment Corp, you can compare the effects of market volatilities on INTERSHOP Communications 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 INTERSHOP Communications with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and SLR Investment.
Diversification Opportunities for INTERSHOP Communications and SLR Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and SLR is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie 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 INTERSHOP Communications 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 INTERSHOP Communications Aktiengesellschaft 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 INTERSHOP Communications i.e., INTERSHOP Communications and SLR Investment go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and SLR Investment
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the SLR Investment. In addition to that, INTERSHOP Communications is 2.3 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 0.06 per unit of volatility. If you would invest 1,145 in SLR Investment Corp on August 26, 2024 and sell it today you would earn a total of 400.00 from holding SLR Investment Corp or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. SLR Investment Corp
Performance |
| Timeline |
| INTERSHOP Communications |
| SLR Investment Corp |
INTERSHOP Communications and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and SLR Investment
The main advantage of trading using opposite INTERSHOP Communications and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications 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.The idea behind INTERSHOP Communications Aktiengesellschaft and SLR Investment Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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