Correlation Between SLR Investment and BGC Partners
Can any of the company-specific risk be diversified away by investing in both SLR Investment and BGC Partners 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 SLR Investment and BGC Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and BGC Partners, you can compare the effects of market volatilities on SLR Investment and BGC Partners 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 SLR Investment with a short position of BGC Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and BGC Partners.
Diversification Opportunities for SLR Investment and BGC Partners
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SLR and BGC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and BGC Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Partners and SLR Investment 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 SLR Investment Corp are associated (or correlated) with BGC Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Partners has no effect on the direction of SLR Investment i.e., SLR Investment and BGC Partners go up and down completely randomly.
Pair Corralation between SLR Investment and BGC Partners
If you would invest 1,508 in SLR Investment Corp on September 3, 2024 and sell it today you would earn a total of 167.00 from holding SLR Investment Corp or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SLR Investment Corp vs. BGC Partners
Performance |
| Timeline |
| SLR Investment Corp |
| BGC Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SLR Investment and BGC Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and BGC Partners
The main advantage of trading using opposite SLR Investment and BGC Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, BGC Partners 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 BGC Partners will offset losses from the drop in BGC Partners' long position.| SLR Investment vs. Horizon Technology Finance | SLR Investment vs. WhiteHorse Finance | SLR Investment vs. Gladstone Capital | SLR Investment vs. PennantPark Floating Rate |
| BGC Partners vs. Newmark Group | BGC Partners vs. Consolidated Communications | BGC Partners vs. Brookline Bancorp | BGC Partners vs. SLR Investment Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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