Correlation Between Obducat AB and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Obducat AB 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 Obducat AB and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Obducat AB and SLR Investment Corp, you can compare the effects of market volatilities on Obducat AB 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 Obducat AB with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Obducat AB and SLR Investment.
Diversification Opportunities for Obducat AB and SLR Investment
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Obducat and SLR is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Obducat AB 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 Obducat AB 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 Obducat AB 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 Obducat AB i.e., Obducat AB and SLR Investment go up and down completely randomly.
Pair Corralation between Obducat AB and SLR Investment
Assuming the 90 days trading horizon Obducat AB is expected to under-perform the SLR Investment. In addition to that, Obducat AB is 3.55 times more volatile than SLR Investment Corp. It trades about -0.29 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.23 per unit of volatility. If you would invest 1,427 in SLR Investment Corp on August 30, 2024 and sell it today you would earn a total of 152.00 from holding SLR Investment Corp or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Obducat AB vs. SLR Investment Corp
Performance |
| Timeline |
| Obducat AB |
| SLR Investment Corp |
Obducat AB and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Obducat AB and SLR Investment
The main advantage of trading using opposite Obducat AB and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Obducat AB 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.| Obducat AB vs. Mizuho Financial Group | Obducat AB vs. JSC Halyk bank | Obducat AB vs. National Bank Holdings | Obducat AB vs. Daido Steel Co |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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