Correlation Between SLR Investment and 10X GENOMICS
Can any of the company-specific risk be diversified away by investing in both SLR Investment and 10X GENOMICS 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 10X GENOMICS 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 10X GENOMICS DL, you can compare the effects of market volatilities on SLR Investment and 10X GENOMICS 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 10X GENOMICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and 10X GENOMICS.
Diversification Opportunities for SLR Investment and 10X GENOMICS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SLR and 10X is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and 10X GENOMICS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X GENOMICS DL 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 10X GENOMICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X GENOMICS DL has no effect on the direction of SLR Investment i.e., SLR Investment and 10X GENOMICS go up and down completely randomly.
Pair Corralation between SLR Investment and 10X GENOMICS
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.27 times more return on investment than 10X GENOMICS. However, SLR Investment Corp is 3.75 times less risky than 10X GENOMICS. It trades about 0.19 of its potential returns per unit of risk. 10X GENOMICS DL is currently generating about 0.01 per unit of risk. If you would invest 1,501 in SLR Investment Corp on September 13, 2024 and sell it today you would earn a total of 85.00 from holding SLR Investment Corp or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. 10X GENOMICS DL
Performance |
| Timeline |
| SLR Investment Corp |
| 10X GENOMICS DL |
SLR Investment and 10X GENOMICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and 10X GENOMICS
The main advantage of trading using opposite SLR Investment and 10X GENOMICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, 10X GENOMICS 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 10X GENOMICS will offset losses from the drop in 10X GENOMICS's long position.| SLR Investment vs. EVS Broadcast Equipment | SLR Investment vs. Summit Hotel Properties | SLR Investment vs. Park Hotels Resorts | SLR Investment vs. BROADSTNET LEADL 00025 |
| 10X GENOMICS vs. DAIRY FARM INTL | 10X GENOMICS vs. Canon Marketing Japan | 10X GENOMICS vs. Federal Agricultural Mortgage | 10X GENOMICS vs. AUTO TRADER ADR |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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