Correlation Between SLR Investment and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both SLR Investment and AXWAY SOFTWARE 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 AXWAY SOFTWARE 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 AXWAY SOFTWARE EO, you can compare the effects of market volatilities on SLR Investment and AXWAY SOFTWARE 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 AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and AXWAY SOFTWARE.
Diversification Opportunities for SLR Investment and AXWAY SOFTWARE
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and AXWAY is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO 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 AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of SLR Investment i.e., SLR Investment and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between SLR Investment and AXWAY SOFTWARE
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.57 times more return on investment than AXWAY SOFTWARE. However, SLR Investment Corp is 1.75 times less risky than AXWAY SOFTWARE. It trades about 0.07 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about 0.03 per unit of risk. If you would invest 1,400 in SLR Investment Corp on October 17, 2024 and sell it today you would earn a total of 174.00 from holding SLR Investment Corp or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| SLR Investment Corp |
| AXWAY SOFTWARE EO |
SLR Investment and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and AXWAY SOFTWARE
The main advantage of trading using opposite SLR Investment and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| SLR Investment vs. 24SEVENOFFICE GROUP AB | SLR Investment vs. OFFICE DEPOT | SLR Investment vs. GEELY AUTOMOBILE | SLR Investment vs. ecotel communication ag |
| AXWAY SOFTWARE vs. CDL INVESTMENT | AXWAY SOFTWARE vs. GEELY AUTOMOBILE | AXWAY SOFTWARE vs. Zoom Video Communications | AXWAY SOFTWARE 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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