Correlation Between OFFICE DEPOT and SLR Investment
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and SLR Investment Corp, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and SLR Investment.
Diversification Opportunities for OFFICE DEPOT and SLR Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and SLR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and SLR Investment go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and SLR Investment
If you would invest 1,130 in SLR Investment Corp on October 17, 2024 and sell it today you would earn a total of 444.00 from holding SLR Investment Corp or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. SLR Investment Corp
Performance |
| Timeline |
| OFFICE DEPOT |
| SLR Investment Corp |
OFFICE DEPOT and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and SLR Investment
The main advantage of trading using opposite OFFICE DEPOT and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. UNIDOC HEALTH P | OFFICE DEPOT vs. American Eagle Outfitters | OFFICE DEPOT vs. URBAN OUTFITTERS | OFFICE DEPOT vs. EVS Broadcast Equipment |
| SLR Investment vs. 24SEVENOFFICE GROUP AB | SLR Investment vs. OFFICE DEPOT | SLR Investment vs. GEELY AUTOMOBILE | SLR Investment vs. ecotel communication ag |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |