Correlation Between Nisshinbo Holdings and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Nisshinbo Holdings 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 Nisshinbo Holdings and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nisshinbo Holdings and SLR Investment Corp, you can compare the effects of market volatilities on Nisshinbo Holdings 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 Nisshinbo Holdings with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisshinbo Holdings and SLR Investment.
Diversification Opportunities for Nisshinbo Holdings and SLR Investment
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nisshinbo and SLR is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nisshinbo Holdings 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 Nisshinbo Holdings 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 Nisshinbo Holdings 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 Nisshinbo Holdings i.e., Nisshinbo Holdings and SLR Investment go up and down completely randomly.
Pair Corralation between Nisshinbo Holdings and SLR Investment
Assuming the 90 days trading horizon Nisshinbo Holdings is expected to under-perform the SLR Investment. In addition to that, Nisshinbo Holdings is 1.51 times more volatile than SLR Investment Corp. It trades about -0.07 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,228 in SLR Investment Corp on September 20, 2024 and sell it today you would earn a total of 302.00 from holding SLR Investment Corp or generate 24.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nisshinbo Holdings vs. SLR Investment Corp
Performance |
| Timeline |
| Nisshinbo Holdings |
| SLR Investment Corp |
Nisshinbo Holdings and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nisshinbo Holdings and SLR Investment
The main advantage of trading using opposite Nisshinbo Holdings and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nisshinbo Holdings 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.| Nisshinbo Holdings vs. SLR Investment Corp | Nisshinbo Holdings vs. Harmony Gold Mining | Nisshinbo Holdings vs. HK Electric Investments | Nisshinbo Holdings vs. AOYAMA TRADING |
| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. SIVERS SEMICONDUCTORS AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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