Correlation Between SLR Investment and Newmark
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Newmark 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 Newmark 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 Newmark Group, you can compare the effects of market volatilities on SLR Investment and Newmark 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 Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Newmark.
Diversification Opportunities for SLR Investment and Newmark
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SLR and Newmark is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group 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 Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of SLR Investment i.e., SLR Investment and Newmark go up and down completely randomly.
Pair Corralation between SLR Investment and Newmark
Given the investment horizon of 90 days SLR Investment is expected to generate 6.51 times less return on investment than Newmark. But when comparing it to its historical volatility, SLR Investment Corp is 2.17 times less risky than Newmark. It trades about 0.06 of its potential returns per unit of risk. Newmark Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,023 in Newmark Group on August 28, 2024 and sell it today you would earn a total of 540.00 from holding Newmark Group or generate 52.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Newmark Group
Performance |
| Timeline |
| SLR Investment Corp |
| Newmark Group |
SLR Investment and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Newmark
The main advantage of trading using opposite SLR Investment and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.| SLR Investment vs. Horizon Technology Finance | SLR Investment vs. WhiteHorse Finance | SLR Investment vs. Gladstone Capital | SLR Investment vs. PennantPark Floating Rate |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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