Correlation Between SLR Investment and Chegg
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Chegg 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 Chegg 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 Chegg Inc, you can compare the effects of market volatilities on SLR Investment and Chegg 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 Chegg. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Chegg.
Diversification Opportunities for SLR Investment and Chegg
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SLR and Chegg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Chegg Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chegg Inc 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 Chegg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chegg Inc has no effect on the direction of SLR Investment i.e., SLR Investment and Chegg go up and down completely randomly.
Pair Corralation between SLR Investment and Chegg
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.19 times more return on investment than Chegg. However, SLR Investment Corp is 5.15 times less risky than Chegg. It trades about 0.1 of its potential returns per unit of risk. Chegg Inc is currently generating about -0.17 per unit of risk. If you would invest 1,530 in SLR Investment Corp on October 28, 2024 and sell it today you would earn a total of 62.00 from holding SLR Investment Corp or generate 4.05% 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. Chegg Inc
Performance |
| Timeline |
| SLR Investment Corp |
| Chegg Inc |
SLR Investment and Chegg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Chegg
The main advantage of trading using opposite SLR Investment and Chegg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Chegg 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 Chegg will offset losses from the drop in Chegg's long position.| SLR Investment vs. KOBE STEEL LTD | SLR Investment vs. Mount Gibson Iron | SLR Investment vs. RELIANCE STEEL AL | SLR Investment vs. CREO MEDICAL GRP |
| Chegg vs. Advanced Medical Solutions | Chegg vs. MeVis Medical Solutions | Chegg vs. Compugroup Medical SE | Chegg vs. PULSION Medical Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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